User A is on Exchange server 1, storage group 1, mailbox store 1.
User B is on Exchange server 1, storage group 1, mailbox store 1.
Both user A and User B appear in the GAL. User A has the smtp address usera@mydomain.com, and user b has the smtp address userb@mydomain.com. The default recipient policy has an LDAP filter of (mailnickname=*) and a smtp address generation template of @mydomain.com. When user a sends a message to user b, user a receives an NDR with the text "5.0.0 Permanent failure".
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