Question : Why is email working from the outside world but not from other people on our webserver?

We have a website on a Red Hat Linux dedicated server but the clients have their emails set up on their own Exchange server. We're having a problem where everyone from the outside world can email the client, and we can receive emails from them, but if I email from the dedicated server, or the clients contact forms, the server still looks for the email account locally and the server gives an error:

"The server response was: sorry, no mailbox here by that name. (#5.7.17)"

We've just recently moved from Fasthost's basic control panel on which we had this working, but on our new server in Plesk I'm not sure how to modify the DNS settings correctly

Code Snippet:

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*.webmail.loughlinpharma.co.uk. CNAME loughlinpharma.co.uk. 87.237.57.201 / 24 PTR loughlinpharma.co.uk. loughlinpharma.co.uk. MX (10) mail.loughlinpharma.co.uk. loughlinpharma.co.uk. TXT v=spf1 +a +mx a:wilton.dedi.melbourne.co.uk -all mail.loughlinpharma.co.uk. A **Exchange Server IP** www.loughlinpharma.co.uk. CNAME loughlinpharma.co.uk.

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Answer : Why is email working from the outside world but not from other people on our webserver?

That is something you will have to take up with the host.
If you are using (or are forced to) use the host's email server for outbound email, then that maybe the cause of the problem and using direct delivery or another email server outside of the their network would get round it.

Basically it is a poor design of the ISPs network, but very common.

Simon.