I see a potential problem for you: when you send a mail from your
linux machine to another machine in isbd.mynet, the envelope sender's
address will have isbd.demon.co.uk as the domain part.

Even worse: unless you fix all MUAs, the From: headers will have the
machine's name server2.isbd.mynet in the domain part.  

I think the only way to succesfully manage your setup is to use the
mess822 package (from djb).

Mate

   Currently I have:-
   
   defaultdomain        contains isbd.mynet
   defaulthost  contains isbd.demon.co.uk
   locals               contains isbd.demon.co.uk and server2.isbd.mynet
   me           contains isbd.demon.co.uk
   plusdomain   contains isbd.mynet
   rcpthosts    contains isbd.demon.co.uk and server2.isbd.mynet

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