Your message did not reach some or all of the intended recipients.
Subject: 123
Sent: 2/25/2004 10:46 PM
The following recipient(s) could not be reached:
'domain@domain.com' on 2/25/2004 10:46 PM
553 sorry, that domain isn't in my list of allowed rcpthosts (#5.7.1)
I get this instead of "You cannot relay" type error is this correct? Just checking.

Just to note: there is no domain.com in my rcpthosts.
Right, that's qmail's version of "You can't relay."
Basically, qmail is saying "the domain you're sending to is not one that I accept mail for, so I won't accept the mail."
If you're an authenticated relayclient, you would not get the message.
It would be better if qmail said "sorry, that domain isn't in my list of allowed rcpthosts, and you are not allowed to relay."