None of your e-mail accounts could send to this recipient

One of our users is having a very strange issue where when he sends email to SMTP recipients he gets an immediate NDR stating "None of your e-mail accounts could send to this recipient" and the from field of the email is blank if you look in sent items.  I've seen the KB article http://support.microsoft.com/kb/872896 but it doesn't apply.
we're running Exchange Server 2003 SP2
user is running Outlook 2007 SP1 from multiple computers in cached mode
user has this issue intermittently from all 3 machines... there seems to be no pattern.
something additional that I've noticed about the emails in the sent items that produce NDRs is that if I double-click the email address in the To field there is a custom email type of "S" specified instead of SMTP which of course isn't custom.  This is surely the reason for the NDR since our exchagne server has no way to route type "S" email messages but the user isn't typing this in and the contacts he's using are correctly set to type "SMTP"
Has anyone seen this before?
Miles

I find this happens fairly regularly but intermittently, almost always to new email addresses that aren't in the users contacts list. I suspected that our users are clicking the 'mailto' link when replying but deleting the autocomplete entry doesn't resolve
it and it's even happened when it's a new message (not replied or forwarded) to someone the user hasn't emailed before. Generally, if we try again after a few hours then the email will eventually send but it's very frustrating.
A couple  of our users reported that it was happening to them so I enabled Outlook logging to try and get to the bottom of it, here's the results of one of the log files (they're both pretty much the same)
2012.07.03 11:49:36 <<<< Logging Started (level is LTF_TRACE) >>>>
2012.07.03 11:49:36 HELPER::Initialize called
2012.07.03 11:49:36 Initializing: Finding a Transport
2012.07.03 11:49:36 MAPI XP Call: XPProviderInit in EMSMDB.DLL, hr = 0x00000000
2012.07.03 11:49:36 MAPI Status: (-- -- ---/--- -- ---)
2012.07.03 11:49:36 MAPI XP Call: TransportLogon, hr = 0x00000000
2012.07.03 11:49:36 Initializing: Found a transport, Error code = 0x00000000
2012.07.03 11:49:36 MAPI XP Call: AddressTypes, hr = 0x00000000, cAddrs = 3, cUids = 1
2012.07.03 11:49:36 MAPI Status: (IN -- ---/OUT -- ---)
2012.07.03 11:49:36 MAPI XP Call: TransportNotify(BEGIN_IN|BEGIN_OUT), hr = 0x00000000
2012.07.03 11:49:36 HELPER::Initialize done, Error code = 0x00000000
2012.07.03 11:49:36 HELPER::GetCapabilities called, Error code = 0x00000000
2012.07.03 11:50:18 [email protected]: Synch operation started (flags = 00000001)
2012.07.03 11:50:18 [email protected]: UploadItems: 1 messages to send
2012.07.03 11:50:18 EXECUTING Put MAPI TASK
2012.07.03 11:50:19 Starting the Spooling Cycle
2012.07.03 11:50:19 MAPI Status: (IN -- ---/OUT fl ---)
2012.07.03 11:50:19 MAPI XP Call: FlushQueues, hr = 0x00000000, ulFlushFlags = 0x0000001a
2012.07.03 11:50:19 Sending one message
2012.07.03 11:50:19 Progress: Sending message ' damage to door' (size 5.48 KBytes)
2012.07.03 11:50:19 MAPI Status: (IN -- ---/OUT fl act)
2012.07.03 11:50:19 MAPI Status: (IN -- ---/OUT fl ---)
2012.07.03 11:50:19 MAPI XP Call: SubmitMessage, hr = 0x80040502
2012.07.03 11:50:19 MAPI XP Call: SubmitMessage returned MAPI_E_NOT_ME.
2012.07.03 11:50:19 FINISHED MAPI TASK
2012.07.03 11:50:19 [email protected]: ReportStatus: RSF_COMPLETED, hr = 0x00000000
2012.07.03 11:50:19 [email protected]: Synch operation completed
2012.07.03 11:50:19 Sending done, Error code = 0x00000000
2012.07.03 11:50:19 Sending done, Error code = 0x8004010f
2012.07.03 11:50:19 MAPI Status: (IN -- ---/OUT -- ---)
2012.07.03 11:50:19 Finishing the Spooling Cycle, Error code = 0x00000000
2012.07.03 11:55:21 [email protected]: Synch operation started (flags = 00000001)
2012.07.03 11:55:21 [email protected]: UploadItems: 1 messages to send
2012.07.03 11:55:21 EXECUTING Put MAPI TASK
2012.07.03 11:55:21 Starting the Spooling Cycle
2012.07.03 11:55:21 MAPI Status: (IN -- ---/OUT fl ---)
2012.07.03 11:55:21 MAPI XP Call: FlushQueues, hr = 0x00000000, ulFlushFlags = 0x0000001a
2012.07.03 11:55:21 Sending one message
2012.07.03 11:55:21 Progress: Sending message 'damage to door' (size 5.50 KBytes)
2012.07.03 11:55:21 MAPI Status: (IN -- ---/OUT fl act)
2012.07.03 11:55:22 MAPI Status: (IN -- ---/OUT fl ---)
2012.07.03 11:55:22 MAPI XP Call: SubmitMessage, hr = 0x80040502
2012.07.03 11:55:22 MAPI XP Call: SubmitMessage returned MAPI_E_NOT_ME.
2012.07.03 11:55:22 FINISHED MAPI TASK
2012.07.03 11:55:22 [email protected]: ReportStatus: RSF_COMPLETED, hr = 0x00000000
2012.07.03 11:55:22 [email protected]: Synch operation completed
2012.07.03 11:55:22 Sending done, Error code = 0x00000000
2012.07.03 11:55:22 Sending done, Error code = 0x8004010f
2012.07.03 11:55:22 MAPI Status: (IN -- ---/OUT -- ---)
2012.07.03 11:55:22 Finishing the Spooling Cycle, Error code = 0x00000000
can anyone shed any light on this for me please?
cheers
Carter

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