What does “lowest numbered MX record points to local host” mean?
A0301: It means exactly what it says. Exim has tried to route a domain that it thinks is not local, and when it looked it up in the DNS, the lowest numbered MX record pointed at the local host. (A) If the domain is meant to be handled as a local domain, then there is a problem with the setting of the local_domains configuration option. If you have not set this, then only the name of the local host is treated as a local domain. If, for example, your host is called myhost.mydomain.com and you want it to handle mail for the domain mydomain.