This must be an older release of SMTP and/or VM. Comment out the NSINTERADDR line entirely (14.0.0.0 is a historical variant of 127.0.0.1 and is not equal to no name service at all) and put the IPMAILERADDR back to the IP address of the mail server where you want all the mail to go. In older versions of the SMTP code, name resolution had to fail completely for IPMAILERADDR to have any effect at all.
You'll probably need to use the :exit tag in the SMTPC DTCPARMS file to copy a customized PROFILE TCPIP to the SMTP server's A disk (or run a pipe to strip out all the NSINTERADDR lines and write it to the server A disk during startup).
