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CRM not sending most emails

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We are using CRM 4.0 and about a year ago everything was working fine with email in CRM.  We started to use a hosted solution but now would like to go back to CRM but nothing is working. 

  1. If I send a direct mail using User X (this user is setup with both incoming/outgoing email router and the test access on the router for this user is successful) it sends and is received. 
  2. If I send a direct email to a marketing list (adv find marketing list equals, then find and select direct email) it sends/receives when I do this from my PC, however if a user in our Vancouver office does the same thing, using the send as the same as me (ie User X) it never sends.  It only sends if they select a single contact.
  3. If I send an email campaign with User X, the email never sends and under quick campaigns it forever sits at pending. The logs show that no emails are waiting to be sent.
  4. If I try and get a list of duplicates in CRM, the email never gets sent.  3 other users tried this and it doesn't work for them either. 


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