Reporting-MTA: dns;mydomain.com – SBS 2003 w/ Covad ISP

I am getting rather frustrated with this event. Currently I have users receiving some email delays with error Reporting-MTA: dns;mydomainname.com — I am also having some users receive error which are in some internal emails:

Final-Recipient: rfc822;user@mydomain.com
Action: delayed
Status: 4.4.7
Will-Retry-Until: Thu, 3 Jul 2008 10:55:08 -0700
X-Display-Name: ‘Recipients Name’

Could these be related and any idea what I need to change on the server? This is on a new SBS 2003 Server installation. Everything appears to be setup correctly from what I can tell.