Hopefully, someone else on the list will tell me wrong, but this is what I have found:
 
According to Imail tech support, this is part of the SMTP protocol (the server refuses mail for bad addresses).  It is up to the relaying server, or in your case client to generate the bounced message.  I'm guessing your using Outlook98 as the client, we have had the same issue with it.
 
The only way to alter this is to set-up a nobody alias with an auto-response.  This unfortunately means that your server is then responsible for generating bounce messages for all mis-addressed incoming mail from anybody.  Also, you will have to devise a method of cleaning out the nobody mailbox, periodically. 
 
After contemplating the nobody mailbox, I have simply decided to keep the standard settings, and "educate" the users.  Not the best solution, but the nobody alias opens a whole different can of worms that could cause problems.
 
 
-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of Josh
Sent: Wednesday, October 06, 1999 3:06 PM
To: [EMAIL PROTECTED]
Subject: [IMail Forum] Mail Rejected by Server (unknow user)

How can i get Imail to process mail going to a local address even if it is not going to a real user (LOCAL ONLY), (IE: i send to jo@LOCALHOST, and there is no jo@LOCALHOST, so Imail would send a postmaster message back to me)
 
right know under a default install, Imail will not even let the message go out of your outbox if you have an incorrect e-mail address in your TO: field (again ONLY LOCAL addresses)
 
 
Josh

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