You do not have permission to send to this recipient.

[stephen]

You do not have permission to send to this recipient. For assistance, contact your system administrator.

<server1.office.xxxxxxx.com #5.7.1>

I received this error when I set up a new Exchange user on Small Business Server 2000.

The problem was due to the The SMTP Connector Delivery Restrictions.
It was set to reject everyone except those listed.
I had to add the new exchange user to the list of accepted names.

In Exchange System Manager Navigate through the following:

Connectors
Small Business SMTP connector
Delivery Restrictions Tab
Add the user who you wish to give permission to send emails.


Another cause could be that the email was rejected by the recipients email server
This may occur because the email is being sent directly from your server
Change the Default SMTP Virtual Server Smart Host setting

In Exchange System Manager Navigate through the following:

Servers
<server name>
Protocols
SMTP
right click on
Default SMTP Virtual Server
Properties
Delivery
Advanced
Smart Host
key in the SMTP Server of your ISP eg mail.bigpond.com for bigpond