However, I'm unsure why it won't work correctly the way it is since the official name is mail.domain.com and the alias domain is domain.com (the same name without the mail.).
That's exactly where the problem lies -- you're not being consistent. On the one hand, you're telling IMail that the real name of the domain is "mail.domain.com", but that it should also accept mail addressed to @domain.com. On the other hand, you're also telling IMail that the E-mail is normally addressed to @domain.com (by having the alias point to @domain.com).
In this case, I would recommend switching so that the actual domain name is domain.com (with mail.domain.com as an alias), so there is no confusion.
-Scott
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