Problem Sending from Exchange 2003 to Cloud and Syncing cloud with PST

Hello, moving to Office365

Have exchange 2003 With DomainA and DomainB, moved DomainB to the Office365 Cloud solution.

Issue 1

Exchange 2003 users in DomainA cannot send to Cloud DomainB.  DomainB can send to DomainA.

- Removed DomainB Exchange Mail Accounts
- Removed DomainB in Email address generator

Issue 2

Prior to deleting email boxes for DomainB users, exported users mail in DomainB to PST files, created new mail accounts in the cloud, and am trying to Import the PST back to the cloud.  The Mail only appears on the local OST file, it does not arrive to the cloud account (confirmed by going into webmail).  Also contacts appear to all be gone.  Users are mobile, so trying to give them their mail back via the pst file..

Bonus question - Users with Iphones who delete their old Exchange (to 2003) account lose all their contacts when reconfiguring for the cloud. Any suggestions?

Thanks in advance.