There are at least 4 questions to investigate:
- Domino incoming
- Domino outgoing
- Exchange incoming
- Exchange outgoing
- and then the addrressing from one server to the other
Let's attack them one by one, to avoid a lot of confusion. Incoming first:
- does Domino receive incoming mails from the Internet?
- what is the full mail address of a person?
- what is the server's name in the DNS?
- what is the server's domain name in the Configuration document and/or in an Internet Site document?
You might restart the Router to see whether it's correct.
From the logs above, I assume that you defined the Exchange server as smarthost, and that the Domino server doesn't consider itself to be the endpoint for the testmail it received, which is the reason why that incoming mail is immediately transferred to Exchange (transferred, not returned). And then it gets in a loop, probably terminating after 30 hops or so.
What is the status of this question, any progress these last few days?