I've installed SMTP service on Windows Server 2008.

I'm attempting to send emails, however none get delivered. I've scoured logs for a long time, and have solved a few errors.

Currently all emails dropped in the pickup folder are being sent to the badmail folder. The error in the logs is:

Message delivery to the remote domain 'scirra.com' failed for the following reason: Unable to deliver the message because the destination address was misconfigured as a mail loop.

I also downloaded and ran SMTPDiag.exe which gives the following error:

Can anyone help me solve this issue? I'm completely stuck, I've offered to pay our host to fix it but they insist it's all setup correctly. I have a feeling it might be a misconfigured DNS record? I'm not really sure. Thanks for any help.

Here's our DNS info it it helps at all?
http://www.intodns.com/scirra.com

Edit, more info

I drop the following file into my pickup folder:

to:scirra@gmx.com
from:noreply@scirra.com
subject:This is a test.

this is a test.

The gmx address is a temp one I've set up for tests. 3 entries pretty much immediately appear in our badmail folder:

.bad file

From: postmaster@WIN-MT04GJ7U5CB.DNSS
To: noreply@scirra.com
Date: Sun, 26 Feb 2012 20:12:47 +0000
MIME-Version: 1.0
Content-Type: multipart/report; report-type=delivery-status;
    boundary="9B095B5ADSN=_01CCF45544F0D21F00000011WIN?MT04GJ7U5CB."
X-DSNContext: 7ce717b1 - 1378 - 00000002 - C00402CF
Message-ID: <FRaqbC8wS00000009@WIN-MT04GJ7U5CB.DNSS>
Subject: Delivery Status Notification (Failure)

This is a MIME-formatted message.  
Portions of this message may be unreadable without a MIME-capable mail program.

--9B095B5ADSN=_01CCF45544F0D21F00000011WIN?MT04GJ7U5CB.
Content-Type: text/plain; charset=unicode-1-1-utf-7

This is an automatically generated Delivery Status Notification.

Delivery to the following recipients failed.

       scirra@gmx.com




--9B095B5ADSN=_01CCF45544F0D21F00000011WIN?MT04GJ7U5CB.
Content-Type: message/delivery-status

Reporting-MTA: dns;WIN-MT04GJ7U5CB.DNSS
Received-From-MTA: dns;WIN-MT04GJ7U5CB.DNSS
Arrival-Date: Sun, 26 Feb 2012 20:12:47 +0000

Final-Recipient: rfc822;scirra@gmx.com
Action: failed
Status: 5.3.5

--9B095B5ADSN=_01CCF45544F0D21F00000011WIN?MT04GJ7U5CB.
Content-Type: message/rfc822

Received: from mail pickup service by WIN-MT04GJ7U5CB.DNSS with Microsoft SMTPSVC;
     Sun, 26 Feb 2012 20:12:47 +0000
to:scirra@gmx.com
from:noreply@scirra.com
subject:This is a test.
Message-ID: <WIN-MT04GJ7U5CBZS2T00000008@WIN-MT04GJ7U5CB.DNSS>
X-OriginalArrivalTime: 26 Feb 2012 20:12:47.0741 (UTC) FILETIME=[02119AD0:01CCF4C3]
Date: 26 Feb 2012 20:12:47 +0000

this is a test.


--9B095B5ADSN=_01CCF45544F0D21F00000011WIN?MT04GJ7U5CB.--

.bdp

Can't tell anything useful from contents of this file

.bdr

Unable to deliver this message because the follow error was encountered: "This message is a delivery status notification that cannot be delivered.".

The specific error code was 0xC00402C7.


The message sender was <>.


The message was intended for the following recipients.
    noreply@scirra.com

Telnet Test

These are the commands I enter into Telnet (responses are in asterix)

telnet localhost 25
helo www.scirra.com
**250 WIN-MT04GJ7U5CB.DNSS Hello [127.0.0.1]**
mail from:noreply@scirra.com
**250 2.1.0 noreply@scirra.com....Sender OK**
rcpt to:scirra@gmx.com
**250 2.1.5 scirra@gmx.com**
data
**354 Start mail input; end with <CRLF>.<CRLF>**
subject: testing email

testing email content

.
**250 2.6.0 <WIN-MT04GJ7U5CBKpCK00000009@WIN-MT04GJ7U5CB.DNSS> Queued mail for delivery**

This creates a badmail file:

From: postmaster@WIN-MT04GJ7U5CB.DNSS
To: noreply@scirra.com
Date: Sun, 26 Feb 2012 20:20:32 +0000
MIME-Version: 1.0
Content-Type: multipart/report; report-type=delivery-status;
    boundary="9B095B5ADSN=_01CCF45544F0D21F00000013WIN?MT04GJ7U5CB."
X-DSNContext: 7ce717b1 - 1378 - 00000002 - C00402CF
Message-ID: <A1XvpFVjC0000000a@WIN-MT04GJ7U5CB.DNSS>
Subject: Delivery Status Notification (Failure)

This is a MIME-formatted message.  
Portions of this message may be unreadable without a MIME-capable mail program.

--9B095B5ADSN=_01CCF45544F0D21F00000013WIN?MT04GJ7U5CB.
Content-Type: text/plain; charset=unicode-1-1-utf-7

This is an automatically generated Delivery Status Notification.

Delivery to the following recipients failed.

       scirra@gmx.com




--9B095B5ADSN=_01CCF45544F0D21F00000013WIN?MT04GJ7U5CB.
Content-Type: message/delivery-status

Reporting-MTA: dns;WIN-MT04GJ7U5CB.DNSS
Received-From-MTA: dns;www.scirra.com
Arrival-Date: Sun, 26 Feb 2012 20:19:43 +0000

Final-Recipient: rfc822;scirra@gmx.com
Action: failed
Status: 5.3.5

--9B095B5ADSN=_01CCF45544F0D21F00000013WIN?MT04GJ7U5CB.
Content-Type: message/rfc822

Received: from www.scirra.com ([127.0.0.1]) by WIN-MT04GJ7U5CB.DNSS with Microsoft SMTPSVC(7.5.7601.17514);
     Sun, 26 Feb 2012 20:19:43 +0000
subject: testing email
From: noreply@scirra.com
Bcc:
Return-Path: noreply@scirra.com
Message-ID: <WIN-MT04GJ7U5CBKpCK00000009@WIN-MT04GJ7U5CB.DNSS>
X-OriginalArrivalTime: 26 Feb 2012 20:20:22.0045 (UTC) FILETIME=[10DAE4D0:01CCF4C4]
Date: 26 Feb 2012 20:20:22 +0000

testing email content



--9B095B5ADSN=_01CCF45544F0D21F00000013WIN?MT04GJ7U5CB.--