Email Scheduling Question

I'm wondering if you can set up email distributions to email addresses that aren't on the same domain as the sender.  Here is what I have for the settings in my Adaptive Job Server.

I have also created a publication with the following settings:

I have a dynamic recipients list created with one email address that is on the sender's domain and one that is on another domain.  The recipient on the domain gets the email sent by the publication but the publication fails for the other recipient. Am I doing something wrong or is this simply not allowed?

Thanks