Postfix - Relay Access Denied - Error 554 5.7.1

Hi Experts,

Please help me... :(

I'm trying to setup Postfix on Debian server which also have Bind9 installed.

I managed to get my Postfix email server to send mails successfully to the local domain and received successfully a test external email from my hotmail account. The box is also sitting behind a firewall with ports 25,2525 & 587 opened for inbound and outbound.

What I can't do is send a reply email to that hotmail account and getting the following unsuccessful message in the log entries:

Apr 28 22:02:28 ns1 postfix/qmgr[2884]: 58D731DA80: from=<root@xxxxx>, size=479, nrcpt=1 (queue active)

Apr 28 22:02:28 ns1 postfix/local[3003]: 58D731DA80: to=<xxxxx@xxxxx>, orig_to=<root>, relay=local, delay=0.09, delays=0.05/0.01/0/0.04, dsn=2.0.0, status=sent (delivered to command: procmail -a "$EXTENSION")

Apr 28 22:02:28 ns1 postfix/qmgr[2884]: 58D731DA80: removed

Apr 28 22:19:46 ns1 postfix/smtpd[3044]: connect from c114-76-235-101.farfl3.nsw.optusnet.com.au[114.76.235.101]

Apr 28 22:20:09 ns1 postfix/smtpd[3044]: NOQUEUE: reject: RCPT from c114-76-235-101.farfl3.nsw.optusnet.com.au[114.76.235.101]: 554 5.7.1 <xxxxxx@hotmail.com>: Relay access denied; from=<xxxxx@xxxxx> to=<xxxxx@hotmail.com> proto=SMTP helo=<mail>

Apr 28 22:20:13 ns1 postfix/smtpd[3044]: disconnect from c114-76-235-101.farfl3.nsw.optusnet.com.au[114.76.235.101]

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Please see my main.cf file (I replaced real domain name for mydomain1&2):

# See /usr/share/postfix/main.cf.dist for a commented, more complete version
# Debian specific:  Specifying a file name will cause the first
# line of that file to be used as the name.  The Debian default
# is /etc/mailname.
#myorigin = /etc/mailname

smtpd_banner = $myhostname ESMTP $mail_name (Debian/GNU)
biff = no

# appending .domain is the MUA's job.
append_dot_mydomain = no

# Uncomment the next line to generate "delayed mail" warnings
#delay_warning_time = 4h

readme_directory = no

# TLS parameters
smtpd_tls_cert_file=/etc/ssl/certs/ssl-cert-snakeoil.pem
smtpd_tls_key_file=/etc/ssl/private/ssl-cert-snakeoil.key
smtpd_use_tls=yes
smtpd_tls_session_cache_database = btree:${data_directory}/smtpd_scache
smtp_tls_session_cache_database = btree:${data_directory}/smtp_scache
smtp_recipient_restrictions = permit_sasl_authenticated
smtpd_sender_restrictions = permit_sasl_authenticated

# See /usr/share/doc/postfix/TLS_README.gz in the postfix-doc package for
# information on enabling SSL in the smtp client.

myhostname = ns1.mydomain1
alias_maps = hash:/etc/aliases
alias_database = hash:/etc/aliases
myorigin = mydomain1
mydestination = ns1.mydomain1, localhost.mydomain1, , localhost.$mydomain, $myhostname, mydomain1 
relayhost = [omr.tzo.com]:2525 
mynetworks = 127.0.0.0/8 [::ffff:127.0.0.0]/104 [::1]/128 192.168.0.0/24
mailbox_command = procmail -a "$EXTENSION"
mailbox_size_limit = 0
recipient_delimiter = +
inet_interfaces = all
inet_protocals = all
relay_domains = mydomain1, mydomain2

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For the master.cf file - the only changes made were adding extra ports for postfix to listen to as my ISP blocks port 25 and have purchased a relay service from TZO.com to overcome this limitation:

smtp   inet   n   -   n   -   -   smtpd
2525   inet   n   -   n   -   -   smtpd
25       inet   n   -   n   -   -   smtpd

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I don't really understand what the maillog is telling me so I'm hoping you can help point me in the right direction. How can I overcome this Relay Access Denied error or is there a way to disable/enable this parameter?

I thank you in advance.
Ric