No errors creating nickname in ConsoleOne, POA log shows:

ADM: Completed: Update object in post office - Nickname PriDom.PO1."nickname"

However, when sending in, we get a returned error message:

This is an automatically generated Delivery Status Notification

Delivery to the following recipient failed permanently:

Technical details of permanent failure:
Google tried to deliver your message, but it was rejected by the recipient domain. We recommend contacting the other email provider for further information about the cause of this error. The error that the other server returned was: 550 550 No such recipient (state 14).

Any ideas?