550 not local host error outlook 2007

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Anyone find a solution for this I would hope so by now. I did an upgrade over
outlook 2003 with office 2007 beta 2 and I have created the following
problems with sending mail.
1. If I send an email to (e-mail address removed) or any other address outside
of my network I get a non delivery email instantly in my in box from the
system administrator IE:
Your message did not reach some or all of the intended recipients.

Subject: RE: Under the wire update
Sent: 7/28/2006 10:51 AM

The following recipient(s) cannot be reached:

'Joann Mcpherson' on 7/28/2006 10:51 AM
550 not local host watsonfurniture.com, not a gateway
I will note that I sent this email to (e-mail address removed)
I have an pop3 / SMTP server on my local network, has been operational for
five years, has several hundred users and no history of problems and no
recent changes. All of my permissions are set properly this must be a bug
with Outlook 2k7 the box next to this runs fine with Outlook 2k3 and the same
accounts.
I can send mail fine to other users on my mail server just not out side of
my network. The problem only exists on the Outlook 2k7 client.
Anyone out there on this?
 
Yes I did re create the profile and still the same problem. I also have an
exchange server account that is not set as the default, when I set the
exchange server as the default account to send mail i get no errors but the
mail dissapears in to thin air never showing up?
 
Bump, still needing a fix. I have uninstalled 2007 now 2003 fails re
installed 2007 same problem sending. I have deleted and recreated accounts,
when i set my default account to use my exchange server to send mail the out
going mail leavs outlook 2007 fine but never gets to the exchange server for
delivery ie; never to be seen again?
 
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