It was not a DNS issue. It was SMTP VRFY
No. The message said "Sender address rejected: Domain not found". If they cannot find a valid domain ( http://www.dnsstuff.com/tools/traversal.ch?domain=dantor.com&type=MX shows that the MX record for dantor.com does indeed exist), it is a DNS issue. "DNS issue" can mean anything from "they are not getting DNS packets back" to "they are caching incorrect DNS packets" to "their firewall temporary blocked UDP packets". But it is something with their DNS that isn't working properly.
It is, of course, possible that they are using SMTP VRFY (which would really be silly, since almost nobody uses it) and are reporting an incorrect error message. But given the error message, it's a DNS issue (almost certainly on their end).
-Scott
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