Pop3 Connector

I am not overly familiar with the POP3 connector for Exchange 2003, and was hoping someone could help me with this problem:

Windows Server 2003 SP2, Exchange 2003 SP 2

I?ve created an email forwarder on my mail host for NAME@MYDOMAIN.com to go to ADDRESS@hotmail.com but when I try sending an email to the NAME@MYDOMAIN.com email from inside the network (Sent through exchange I do not use local POP accounts), I get an undeliverable mail from the server. It tries to look for it inside the network but it can?t find it since it doesn?t exist inside the network (only on the hosting service). Not sure if there is a simple fix or entry I could put into the server for this email to send it outside the network.

Any help is appreciated
NW