newbee formmail.php help needed

Hello,
With some help,I finally got my new form working independantly on my host using jack's formmail.php. Reqired fields, thank you page, ect all work fine.

My problem is, I have a autoresponder on that email on my host that works fine with the old hosted form mailer but it does not with jacks formmail.php and I cant figure out how to fix it.

Here is the undeliver error I get mailed back..

Date sent: Mon, 18 Jun 2001 18:59:43 -0400
From: Mail Delivery Subsystem
To: [email protected]
To: NAME [email protected]
Subject: Returned mail: see transcript for details

The original message was received at Mon, 18 Jun 2001 18:09:24 -0400
from NAME REMOVED@localhost

----- The following addresses had permanent fatal errors -----
[email protected]
(reason: system config error)

----- Transcript of session follows -----
553 5.3.5 mail.host3.avidhosting.com. config error: mail loops back to me (MX problem?)
554 5.3.5 [email protected]... Local configuration error

and here is what I think is the mail line in the formmail.php...

// mail the content we figure out in the following steps
function mail_it($content, $subject, $email, $recipient) {
mail($recipient, $subject, $content, "From: $email\r\nReply-To: email\r\nX-Mailer: DT_formmail");
}

Does anyone see the prob or have any ideas?

All help is greatly appreciated, Kenny