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Exchange 2007 Local Loop detected

Hi, I was wondering if anyone could possibly assist me with a problem I am having with our internet facing exchange servers. We are using Trend IMSVA as a smart host to for our exchange servers. Recently our internet facing Exchange server has started developing hard drive problems and we decided to replace it with a new one, but since downtime is out of the question, we decided to deploy the new server in tandem with the old one. The new server is up and running and mail routes in to the company without any issues. However when I try to send mail it still routes mail through the old server instead of the new one. If I try to add the new server to the default internet send connector and remove the old server, mail starts building up in the ques, with a error message stating local loop detected. I have updated all the DNS entries I can find, but to still no avail. Does anyone know what is causing this problem or what I can do to resolve it?.  Ishould add this is all still on Exchange 2007.

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