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The "too many hops" error occurs when the mail is delivered to the SMTP server but the server does not know that it should keep mail for that address. It looks up the MX record and tries to relay the mail on to the destination. Each time mail is forwarded by an SMTP server, the server increments a counter. After this happens enough times the SMTP server Maximum Hop Count parameter is exceeded and the mail is returned to the sender as undeliverable.
When most SMTP servers are loaded they automatically configure themselves to accept mail that is addressed to the computer on which they are running. If the computer is named Mail.Company.Com then the SMTP server will accept mail addressed to recipients @Mail.Company.Com. To get the SMTP server to also accept mail addressed to recipients @Company.Com usually requires additional configuration. For example on Microsoft Exchange you need to add the Domain Name (Company.Com) as Inbound. You will need to consult the documentation for your specific SMTP server for the details on how to do this on your SMTP server.
Maxwell
Another possible cause:
In general, a "too many hops" error indicates a mail loop: the user has two accounts, forwarding to each other, which creates an endless loop. A message sent a Pobox account is forwarded to another mailbox; if that account is set to forward to Pobox, then a mail loop is created: mail goes from Pobox to the mailbox back to Pobox back to the mailbox, et cetra, until the loop is ascertained and the message returned to its sender.
Maxwell
by cfolk
by cfolk
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