Validating mx record godaddy
You might want to put some other dns entries in there too? Check that the mx records are pointing to rackspace and you should be good to go. If your Name Servers point to Godaddy and your A records point to Rackspace and you purchased the email hosting on godaddy (which it sounds like you did to set up forwarders) then you most likely have the MX records set to something like smtp.(godaddy's mail servers), which just sounds like a complete mess.
Now most people will typically point the NS to Rackspace, then they will manage the DNS on rackspace and have the email hosted on rackspace and then use fowarders in that email system to whatever address you want.
For more information on correcting your MX records, see Why does my email account show that it is Pending Setup: MX Error?
You are free to use a different mail server but still host your website with In Motion Hosting.
When Office 365 finds the correct TXT record, your domain is verified.
Before you use your domain with Office 365, we have to make sure that you own it.
Your ability to log in to your account at your domain registrar and create the DNS record proves to Office 365 that you own the domain.
I am new to MX Records and cannot seem to find anything that works. Can someone please explain how must I setup my MX Records to point to same IP as my web server?
Consider editing the question or leaving comments for improvement if you believe the question can be reworded to fit within the scope. This says "Emails for should be delivered to the server with the IP address that resolves to".