I'm a little confused on what exactly the "generating server" does in an NDR.

For example, I got the following NDR back when sending to a specific domain:

Diagnostic information for administrators:
Generating server: example.foo.com

#< #5.1.1> #SMTP#

Is the "generating server" the MTA that was the last hop to successfully accept the message and tried to deliver the message at the time of the error? Or is the "generating server" the server that gave back the 5.1.1 error (and did NOT accept the message)?

I also noticed the following:

Reporting-MTA: dns; 
Final-recipient: RFC822; recipient@foo.com
Action: failed Status: 5.1.1 
X-Supplementary-Info: < #5.1.1> 

The generating server is the server that gave back the 5.1.1

5.1.1 > Is in the bad-address failure category, meaning the server received the message, did an internal lookup and couldnt find a mailbox to deliver to and generated an NDR.

A detailed explanation is given here: http://technet.microsoft.com/en-us/library/bb232118.aspx

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