Interesting Email problem - webfolder causes instant redirect of any domain on sever

[Silver_2000]

I was doing some testing of the webfolders feature today and have to assume its related to the issue I just found

Lets say I created an account on the server to prepare to move a domainZ.com from its current host. As soon as I create the account on my server ( dns has NOT yet been changed to my server ) I can no longer send email to domainZ.com -
It instantly fails with

"Your message did not reach some or all of the intended recipients."

Subject: FW:
Sent: 7/6/2007 9:44 PM

The following recipient(s) could not be reached:

'test@domainz.com' on 7/6/2007 9:44 PM
550 No Such User Here

If I was to create an account on my server for Cpanel.net I instantly would no longer be able to send email to cpanel.net

I have flushed my local dns - I have deleted the web folder and have rebooted twice

Im stumped ...

Doug

Also: Checked TCP/ip settings - dns settings,hosts file and lmhosts file

[Silver_2000]

Put in a bug zilla report 5634