sibony88
1. yes the domains are on the sme and i pointed the mx record of the domains to the main domain FQDN of the server
3. the domain2.com is in "Resolve locally" status and the a record of the domain is pointed to sme ip address
I should ask, is your server on a public static IP or a dynamic IP service ?
As you mention "sme ip address", then I assume you have a static IP:
With SME server you do not need MX records.
Just point each FQDN at the SME server public static IP.
If you do insist to create one (or many) MX records, you should point it/them at the public static IP of the SME server.
Unless you have a specific reason for doing so, you should use "Resolve to Internet DNS" or similar name, for your domains.
To have user1@domain1 and user1@domain2 both deliver correctly, you will need to configure Users correctly (ie you cannot have 2 user1) and you need to configure Pseudonyms for each user on each domain, that way domain specific mail will be delivered to the correct user.
Please see the Pseudonyms section in the Manual (& the FAQ) as this has been specifically documented.
ie
pseudonym for joe@domain1 forwards to user joe1
pseudonym for joe@domain2 forwards to user joe2
(in this scenario joe is not a user on your sme server)