This  behaviour is  correct.  UREGINA1  is "nearer"  to  you than  MAINE,
because of the heavily loaded international  lines, and DIST1 won't use a
server unless it has a local recipient for that server (which is probably
not the case at CANADA01). Thus you have to go as far as UREGINA1 to find
a backbone server  with a local recipient, and mail  travels twice across
Canada. The answer is,  again, to use DIST2, which would  make use of the
CANADA01 server to explode the stuff.
 
  Eric