too many hops

[jst]

We're running Scalix 11.1.0. I recently added a domain & this new domain is getting "too many hops" (27). I see this message when I send from an outside account & when I send a test message from a test account on the Scalix server to this domain on the Scalix server.
And yes, this domain is in the "local-host-names" file on our server. The only thing different with this domain & any other in the 40+ domains that reside on our server, is that it is a hyphenated domain. I'm grasping at straws after several days of troubleshooting this; should this hyphenated name make a difference to Scalix?

[Valerion]

No it shouldn't. Does sendmail indicate that it forwards the mail out? If so, t your smarthost, or to another server? Is the domain in /etc/mail/mailertable?