Qmail configuration

Hi All,

I am getting a error in mail log

Code:
Oct  4 22:24:35 secure1 qmail: 1317781475.014756 delivery 29747: deferral:
 207.5.74.239_does_not_like_recipient./Remote_host_said:_450_4.1.8_<root@localhost.xxxxx.com>:
_Sender_address_rejected:_Domain_not_found/Giving_up_on_207.5.74.239./


But my hostname is set as xxxx.com in /var/qmail/control/me and which is resolvable also. But localhost is somehow appending with the mail address (root@localhost.xxxxx.com). Any idea? How can I get rid of it?
 
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