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Exchange 5.5 with PDC uses Proxy Server for outgoing mail, having message failures

I am running Exchange 5.5 on the Primary Domain Controller (PDC) and mail is configured to go out using the Proxy Server. We are using ISDN dial up account with our Internet Service Provider. My question: Mail is queuing up for the last one week and if you see message details most of the messages have more than 20 or 30 retries. Also, the disk space varies where the Exchange database is stored. But all the services are running fine.
In addition to showing the number of retries, the message details dialog box has a recipient's field that should indicate the reason for message failure. Common reasons for failure include name resolution problems, server or router outages, mailboxes full, relaying restricted and others. Troubleshooting this problem should begin with determining the specific reason each message is failing. They may not all be failing for the same reason.

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