Amazon SES returns the error mentioned above when i try to send an email that contains unicode characters in the To: field. Amazon SES Documentation says that such email addresses should be sent in MIME encoded-word syntax, which the mail gem (used by ActionMailer) is doing correctly, it is sent as: =?UTF-8?B?dmluYXl2aW5heeKAmXNAbWFpbGluYXRvci5jb20=?=
I was seeing this same error, and found it was due to an incorrect ReturnPath parameter. The error indicates your ReturnPath parameter does not have a domain name. The ReturnPath parameter should be an email address, and it's the address to which bounce notifications are forwarded.