I figured id finish trying here before i made a support ticket.
To Recap The proglem.
For some reason the software is picking up 5.5.0 as a soft bounce.
So i uninstalled it after our last company email and reinstalled the software. Its still doing the same thing. If it would help you at all i can send you the actual file that is pulling wrong.
Compute SPECS
windows 2003
iis 6
if you can think of anything else you might need let me know.