Mail Forwarding denied restricted by policy

I have the following settings in INBOUND RELAY CONTROLS:

Allow messages to be sent only

to the following external internet domains:

@drXX.com, @drxx.net, @spxx.org

The next two settings are left blank.

The last setting is:

Deny messages from the following internet hosts tob e sent to external internet domains:

my setting is * on this.

Inbound Relay is set to None

DNS Blacklist is set to Disabled

Inbound Connections set to Disabled

Inbound Sender Controls set to Disabled

Inbound Intended Recipient set to Disabled

A user had his email at drxx.net, and has moved to spxx.org. Forwarding was setup to allow his mail to be sent via SMTP to his new email address at spxx.org.

When internet mail is sent to his old address, the mail is not forwarded but is refused for policy reasons.

According to the docs in the “Spam” redbook, this should have the effect of "All hosts will be allowed to realy messages to the 3 “allow to” domains, but not to any other.

I think I may be misinterpreting the rules.