Also we have an ssl cert on the older domain so it needs to be the domain that people get redirected to.

To make this easier, here are the domains:
the original is: https://www.covingtonscyclecity.com
the new one is: http://www.covingtonscustoms.com
The new domain is setup as a "domain alias" for web+email+ftp

So how would that 301 work?
If some one goes to the new www.covingtonscustoms.com then the 301 would redirect them to https://www.covingtonscyclecity.com, but since both domain names show the same files from the same server, wouldn't they run into the same redirect when they get to the old https://www.covingtonscyclecity.com?

I currently have a flash file in the index page that will redirect the user to the main asp/flash page at older domain name using variables in the url that the asp passes to the flash on the page to tell it what content to load.

And for the emails, we do use both allot, the original has been around for a long time, even used in allot of print ads, its the one that people have used to contact us for years, but it is harder for people to remember when you give them the domain name.
The new domain name is allot easier to remember.

It seems to me after thinking about it, that what we need is to have the new domain setup as just a "domain pointer", but it needs to still have the email forwarded to the original domain.

if an email is sent to admin @ covingtonscustoms.com or admin @ covingtonscyclecity.com it needs to be routed to the same account.

I wonder if the new domain can be set up as a "domain alias" for email+ftp, and as a "domain pointer" for web.
Is that even possible?