DNS problem with Exchange 2000, I think

I have a windows 2000 domain controller running exchange 2000.
Internally mail works ok, when i try to mail externally however I get
the following NDR

"A configuration error in the e-mail system caused the message to
bounce between two servers or to be forwarded between two
recipients.Contact your administrator.
<abcdc2.abc.com #5.3.5>

I have configured forwarders for DNS

In virtual SMTP server I have configured forwarders for DNS and the
smtp connector is configured there as abcdc2.abc.com

The SMTP connector is configured to 'forward all mail through this
connector to the following smart hosts abcdc2.abc.com

I am also running ISA server as a firewall, with the SMTP server
published and SMTP traffic allowed

nslookup says Non-existent domain

I am really hoping someone can help me out here

.

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