I'm trying to setup Exchnage 2003 in our test domain to send outbound messages.
I would send an email to a gmail address, for example, but in the Message Tracking Center's message history for this outbound email I get  

![alt text](https://img150.imageshack.us/img150/7827/40554971.png)

This log is the same for SMTP relayed messages as well as for the once sent from Outlook via the exchange protocol.

Does it mean that the message is not reaching the recepient because it is miscategorized for some reason and considered to be local?

How do I fix it?

Thanks!

**@Edit:** So the answer turns out to be quite obvious. What I did is I used this "outbound" emails as emails for AD contacts, to give this emails to SharePoint users. We need this for demoing purposes. 
But I didn't realize that the email property of an AD user is connected with exchange and I suppose Exchange uses it as the email address for that user's mailbox. So Exchange would consider my "outbound" emails to be perfectly local and deliver them to the local mailboxes of the corresponding users.