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forwarding mail from exchange server 2003 to 365 (544 error)

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Hi we have migrated to office 365 (small/medium busines package e2 seats) from exchange server 2003. 

but as we have an old external domain (previous company) that still is hosted on our exchange 2003 server the boss wants all mail from his old email address forwarded to his new office 365 exchange mailbox. 


i have set this up on the server (create new contact as forwarding address, then added this to old domain user so mail gets forwarded to 365 - (i followed microsoft instructions exactly on how to set up forwarding address on 2003 exchange)


when i sent a test email from my personal gmail account to his old email address i get the following error


Could not be delivered because of

554 5.7.1<msh21.xxxxxxxxxx.net[10.254.0.131]>: Client host rejected: Access denied

The following recipients were affected:


*user@oalphatek.com (which is the 365 email i wanted stuff forwarded to.



any help appreciated - thank you 


paul


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