Update: I was reading some Microsoft KB articles on relaying and examining my SMTP Virtual Server settings and found the following which I have removed/disabled:
On the Access tab and in the Relay settings, I removed the 127.0.0.1 entry along with unchecking the box for "Allow all computers which successfully authenticate to relay, regardless of the list above".
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by: weinstein_joshPosted on 2007-08-21 at 12:07:52ID: 19740563
Further update: one open relay test says that it appears to accept message relay but isn't a positive open relay.