Accepting all messages even invalid ones??

[3tpro]

We have begun to see the following issue occur, has anyone else?

By doing telnet to our mail server and performing the standard helo commands etc the mail server takes the message no matter what. This is true even if the intended recipient is not a valid user on the system. Has anyone else seen this problem. We feel that the mail server should not take messages (No such user) if the intended recipient is not valid on the local system. These messages fill up our message queue as you can imagine as all messages are accepted.

Note: These messages never get delivered they just sit in our queue.

CP Version = WHM 11.2.0 cPanel 11.8.0-C16104

=== example ===
250 our.mailserver.com Hello
mail from: test@test.com -Fake from user
250 OK
rcpt to: test@test.com - Not Valid on our system.
250 Accepted - Still takes the message
data
354 Enter message, ending with "." on a line by itself
This is a test
.
250 OK id=1IIXt5-00058I-6k
=== example ===

In the mainlog I get..
2007-08-07 18:29:32 1IIYUS-0006d5-Ua == test@test.com R=lookuphost T=remote_smtp defer (-53): retry time not reached for any host

[lloyd_tennison]

Do you have catchall turned on? if so, then the system is doing exactly that - accepting all.