New distribution groups results in Undeliverable "recipients address not found in recipients email system"

Question

For some reason, new distribution groups I have created result in Undeliverable with the following body, Other distribution groups created in the past work fine. I have tested this outside our organization using my gmail and it gets returned to my gmail
account as well. Users that belong to the group are chosen obviously from the exchange provided users. I have tried using OWA, deleting autoentry, using the full address of the distribution group, I am truly at a loss. Any help is appreciated thanks in advance! 
-Steve
Delivery has failed to these recipients or distribution lists:
[email protected]
The recipient's e-mail address was not found in the recipient's e-mail system. Microsoft Exchange will not try to redeliver this message for you. Please check the e-mail address and try resending this message, or provide the following diagnostic text to your
system administrator.
Sent by Microsoft Exchange Server 2007
Diagnostic information for administrators:
Generating server: akmail.mydomain.COM
[email protected]
#550 5.1.1 RESOLVER.ADR.RecipNotFound; not found ##
Original message headers:
Received: from akmail.mydomain.COM ([::1]) by
 AKMAIL.mydomain.COM ([::1]) with mapi; Tue, 8 Jul 2014 12:43:48 -0400
Content-Type: application/ms-tnef; name="winmail.dat"
Content-Transfer-Encoding: binary
From: Steven Anderson <[email protected]>
To: "[email protected]" <[email protected]>
Date: Tue, 8 Jul 2014 12:43:47 -0400
Subject: test2
Thread-Topic: test2
Thread-Index: AQHPmsvJDOvU9vGSLkK1oPeNzIzatw==
Message-ID: <[email protected]>
Accept-Language: en-US
Content-Language: en-US
X-MS-Has-Attach:
X-MS-TNEF-Correlator: <[email protected]>
MIME-Version: 1.0

Answer 1

Thank you very much for your response Akshay, here is the results from the Get-DistributionGroup:
Name                DisplayName         GroupType           P
techsupport         techsupport         Universal           t
info                info                Universal          
i
*CallOut            *CallOut            Universal           _
AKwirelessorder     AKwirelessorder     Universal           A
*AllEmployees       *AllEmployees       Universal, Secur... _
casstb              casstb              Universal           c
albanytsg           albanytsg           Universal           a
ak911kyalarms       ak911kyalarms       Universal           a
Polk                Polk                Universal          
P
Solatb              Solatb              Universal           S
kytechs             kytechs             Universal           k
AKDISTSolacom       AKDISTSolacom       Universal           A
NEFla               NEFla               Universal           N
RhodeIsland         RhodeIsland         Universal           R
NewYork             NewYork             Universal           N
bradsgroup          bradsgroup          Universal           b
petesgroup          petesgroup          Universal           p
mikesgroup          mikesgroup          Universal           m
test2               test2               Universal, Secur... t
So it does list it, I have 2 domain controllers at the same site one is also hosting the exchange server (we are a small business). I created the distribution group directly on the exchange management console. I will force AD replication, but I have looked
at the structure using ADSIedit and it does list it in the users section which is sort of why I am at a loss on this.  Thanks very much for your help, -Steve