I think one of the sites involved has a mailer which rewrites the
'Sender:' field to have an Internet-style address. The peering code in
1.7d can't handle that. With 1.7e mail is sent to peers via DISTRIBUTE,
which bypasses the local mailer. The only solution I can offer right now
is to send the beta 1.7e code to the site which rewrites the header, if
they agree to run it.
Eric