cannot relay message when sending email to external subdomain

I have setup a domain at my ISP to handle my mail and my
Web Page. I have some users that are remote from my
office and need mail, but not exchange. I setup email
accounts for them at the isp. Mail is delivered to the
ISP for all the accounts. It is delivered into the
individual email accounts for my remote users and into a
catchall@ account for everyone that has accounts on the
exchange server. The exchange (SBS 2K) server uses the
POP3 connector to POP the mail from the ISP and the smtp
connector to deliver mail. To enable me to send mail from
the exchange server I had the ISP setup a subdomain
(syd.mydomain.com) so I could have the exchange server
send mail to the accounts on the isp's mail server.

The problem being, that the exchange server refuses to
send email to the subdomain. The exchange server is
convinced that I'm trying to relay, and will not let me
send mail to the any accounts on the subdomain.

I have checked and tried so many things, but nothing
seems to work. I checked the DNS entries, and everything
is correct.

HELP!!
.

louchAsked:
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VahikCommented:
Exchange will not allow any mail to leave the box as long as it is responsible for that policy.Go to the recipient policy that u have created and uncheck this exchange server is responsible for mail delivery for this address.
Call back and post what recipient policies u have enabled on ur box and we will help u figure it out.

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