I feel your pain....
I ran the 2002 Notes Connector for about 3 weeks before I gave up on it.
I also saw how e-mail addresses would resolve to the whole Domino LDAP name structure (username/CONTAINER/CONTAINER/CONTAINER/DOMAIN). I saw my own doing that, and other addresses I was sending to do the same thing. Now, I did not have any complaints of sending external e-mails with my full Domino address.
There is no configuration of the Connector, so I do not have a good suggestion for you on your problem. The only thing I can of is check your entry in the Names & Address Book on your Domino mail server (if you have Admin rights to it). I would look on the Mail tab, the Internet Address field. See if that is nortont@rexel.com.au or not. TheConnector just pulls all of this info, so the fix should be in Domino, no the Connector.
I personally don't think the Connector is ready for use yet. Have you noticed the heavy CPU usage when the Connector is checking for mail? I have a 500MHZ PII, with 256MG RAM, and every time Outlook used the Connector to check for mail, my entire workstation SLOWED to a crawl for about 30 seconds!
My PDA worked, though, except for the times when I tried to sync it WHILE it was getting mail off the Domino server (due to the whole CPU heavy usage).
Good luck.