gypsy wrote:

<snip>

>>>The Bad Thing That Happens is that the SMTP server says:
>>>
>>>
>>>>May  5 04:5 /smtp[20083]: 702A76D002C: to=<gy...@localhost.me.tld>, 
>>>>relay=none, delay=29, status=deferred (Name service error for localhost: 
>>>>Host not found, try again)
>>>
>>That's something different (can your machine resolve localhost.me.tld,
>>either as an A record, or preferably and MX record)

<snip>

> 127.0.0.1     localhost
> 
> "
> 
> localhost resolves.  me.tld resolves.  Unless you can explain why
> localhost.me.tld SHOULD resolve, I stand by "forwarding is not correct
> behavior" and I believe my configuration to be correct.  

localhost.me.tld doesn't resolve because it's not defined.  Unless you
have a line in your dnsmasq.conf like the following:

address=/localhost.me.tld/127.0.0.1

Dnsmasq doesn't know the IP for localhost.me.tld.  Your hosts file only
specifies the host, "localhost".  Once you start appending a domain
name, it makes it an entirely different entity.  So, your mail server is
trying to look up the address of the mail server for localhost.me.tld,
and since you don't have it specified anywhere, dnsmasq tries to forward
it.  There is nothing special about the me.tld domain that dnsmasq
should know about.  There is no way for dnsmasq to know that
localhost.me.tld is supposed to actually be the localhost.

-John

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