HELP! Failure Notice - please advise...

I keep getting the following message on order notification:

From: [email protected]
Date: December 7, 2008 3:05:38 PM EST
To: [email protected]
Subject: failure notice

We're sorry. There's a problem with the e-mail address(es) you're trying
to send to. Please verify the address(es) and try again. If you continue
to have problems, please contact Customer Support at (480) 624-2500.

[email protected]:
child status 100...This message is looping: it already has my Delivered-To line. (#5.4.6)

--- Below this line is a copy of the message.

Return-Path: [email protected]
Received: (qmail 11231 invoked by uid 1000); 7 Dec 2008 20:05:38 -0000
Message-ID: 20081207200538.11230.qmail@p3plsmtp01-01.prod.phx3.secureserver.net
Date: 7 Dec 2008 13:05:38 -0700
Delivered-To: [email protected]
Precedence: junk
To: Paperbag Studios [email protected]
From: "Paperbag Studios" [email protected]
Subject: [Auto-Reply] [EXTRA CC ORDER info] #23

Thank you for your email. We try to respond within 24 hours of receiving your message.

Can anybody advise how to fix this? I've tried to figure it out and just can't see where the issue is. Any help is greatly appreciated!!

Check & or post your settings in admin > config > email

Here is what I have:

E-Mail Transport Method -> sendmail
E-Mail Linefeeds -> LF
Use MIME HTML When Sending Emails -> true
Send E-Mails -> true
Email Archiving Active? -> false
E-Mail Friendly-Errors -> true
Email Address (Displayed to Contact you) -> [email protected]
Email Address (sent FROM) -> [email protected]
Emails must send from known domain? -> No
Email Admin Format? -> HTML
Send Copy of Order Confirmation Emails To -> [email protected], [email protected]
Send Copy of Create Account Emails To - Status -> 0
Send Copy of Create Account Emails To -> [email protected]
Send Copy of Tell a Friend Emails To - Status -> 0
Send Copy of Tell a Friend Emails To -> [email protected]
Send Copy of Customer GV Send Emails To - Status -> 1
Send Copy of Customer GV Send Emails To -> [email protected]
Send Copy of Admin GV Mail Emails To - Status -> 0
Send Copy of Customer Admin GV Mail Emails To -> [email protected]
Send Copy of Admin Discount Coupon Mail Emails To - Status -> 0
Send Copy of Customer Admin Discount Coupon Mail Emails To -> [email protected]
Send Copy of Admin Orders Status Emails To - Status -> 0
Send Copy of Admin Orders Status Emails To -> [email protected]
Send Notice of Pending Reviews Emails To - Status -> 1
Send Notice of Pending Reviews Emails To -> [email protected]
Set "Contact Us" Email Dropdown List
Allow Guest To Tell A Friend -> true
Contact Us - Show Store Name and Address -> 1
Send Low Stock Emails -> 1
Send Low Stock Emails To -> [email protected]
Display "Newsletter Unsubscribe" Link? -> true
Audience-Select Count Display -> true
SMTP Email Account Mailbox -> YourEmailAccountNameHere
SMTP Email Account Password ****************
SMTP Email Mail Host mail.EnterYourDomain.com
SMTP Email Mail Server Port -> 25
Convert currencies for Text emails -> £,£:€,€

Thank you in advance! Your help is really appreciated!

It looks as though you are with GoDaddy and they are using a separate SMTP mail server

MAILER-DAEMON@p3plsmtp01-01.prod.phx3.secureserver.net

You need to use one of the SMTP methods of transport Here are the areas you need to edit. They should have the particulars or if you have setup a desktop client like outlook or outlookExpress the details are the same

E-Mail Transport Method -> sendmail change to SMTP or SMTP Auth

SMTP Email Account Mailbox -> YourEmailAccountNameHere
SMTP Email Account Password ****************
SMTP Email Mail Host mail.EnterYourDomain.com
SMTP Email Mail Server Port -> 25 

I fixed this in the configuration -> email -> selecting no to the emails must come from known server option.

In my case the autoresponder for my email was trying to send an autoresponse to itself causing a loop and generating this message. Changing this to no changes the way sendmail gives it to the server.

:clap: