What's necessary to setup automated bounce processing?

Martin Kuba

Specify a separate mail account in envelope's 'MAIL FROM:' header than in 'From:' header. Then most of bounces will go to the first account, while replies to the second account. (About 1% of bounces will still come to the same account as replies, because of bad implementations of SMTP servers.)

To set the envelope header you will need JavaMail v1.2 or newer, set it using mail.smtp.from property, as is described in another answer.

Use VERPs to track which bounce belongs to which email.

You may want to use similar technique as ezmlm-weed for differenciating real bounces from delay notifications, replies from vacation autoresponders and another junk.