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Event ID: 203 Source: WindowsSmallBusinessServer2008

Level
Description
An error occurred while delivering mail to "user@domain.com" on the SMTP server "localhost". The error code was 0x800ccc69. Verify that the mailbox exists and that the Exchange receive connectors are configured properly.
Comments
 
For the scenario of having your emails hosted externally and wishing to POP them onto SBS 2008 Server using the POP connector the following may resolve the above issue.

Within Exchange Management Console (2007) -> Organisation configuration -> Hub transport -> Accepted Domains -> Added new excepted domain (RMC on white space) -> External Relay domain -> added the required "domain.com" appropriately.

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