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Dealing with 'undeliverable notifications'

I installed Exchange 2003 about two months ago and everything is working fine except when mail bound for our domain is spelled incorrectly. I can see the email sitting in the queue and I would like to notify the sender this message was undeliverable. Is there any reason why I shouldn't notify them? How can I get this notification working?
If you're trying to enable non-delivery receipts to Internet senders misspelling users in your domain, then you'll need to go to the properties of the Internet Message Format in your Global Settings within Exchange System Manager (ESM). Once there, flip to the Advanced tab and make sure the checkbox for "Allow non-delivery reports" is checked.

If, however, you are seeing inbound Internet email stuck in an inbound queue, then something else is wrong. Your server should automatically be recognizing that certain addresses (i.e., names misspelled) don't exist in your organizations and be handling these appropriately instead of attempting to deliver them. You don't give a lot of details in your question, but things I'd look at in troubleshooting this problem include message header information for the problematic messages, recipient policy settings and errors/warnings in the application event log on the server.

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