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Exchage 2003 email rejected to some domains.

HELP!  This is a new installation of Exchange 2003.  I can receive email from the internet, and can send it anywhere from a OWA.  HOWEVER when I try to send email from Outlook some goes through and some bounces back with Undeliverable #5.5.0 smtp;550.

To fix I have tried the following:

1. I set up the internal dns entry for mail.company.com with the public IP address and set up the mx mail.company.com.

2. I also ran the Exchange System Manager, Internet Email Wizard and I get an error:  To send internet email the selected server cannot be a bridgehead server  ID no: c103b530  Exchange System Manager.

Our IP was previously used as a relay but I am working on correcting that now.

What I don't understand is why it works with exchange OWA without problem, and fails to some domains when using outlook.  It is the same server!

Thanks

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Dragonmen: Here is my results from the telnet.    The line that reads 250 2.1.5 "david@avsc.com"@slingmedia.com looks funny to me the way it is formatted. Is this right? or is this a clue to my problem?

220 slingscream.slingmedia.com Microsoft ESMTP MAIL Service, Version: 6.0.3790.0
 ready at  Thu, 19 Aug 2004 10:54:11 -0700
helo mail.slingmedia.com
250 slingscream.slingmedia.com Hello [208.54.100.241]
mail from: david@slingmedia.com
250 2.1.0 david@slingmedia.com....Sender OK
rcpt to: "david@avsc.com"
250 2.1.5 "david@avsc.com"@slingmedia.com
data
354 Start mail input; end with <CRLF>.<CRLF>
Just testing 1234
.
250 2.6.0 <SLINGSCREAMoYAPNXRP00000009@slingscream.slingmedia.com> Queued mail f
or delivery

tsorensen55: Could you walk me thourgh setting authentication on the server and on the client.  Thanks
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Joseph Nyaema
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It seems that  the entry in the open relay database was causing the bounce.  I knew that was at least part of the problem, however the fact that I could send via the web client without a bounce still has me puzzled.  I had submitted changes to have the IP removed from the open relay before I posted this question so I will split the points between all who contributed.  Thanks to all for the input.
Do you still need the step by step instructions on setting up the server to require authentication for outgoing mail? Just let me know and I will get it posted ASAP.
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tsorensen55: Yes,  I would like that.  Also, if you have any tips for securing OWA that would be great!
OK first things first, the exchange server part. Since you are running Exchange 03 I’ll do it step by step in how I see it on our Exchange 03 server.
1.      Open the Exchange System Administrator.
2.      Expand the Administrative Groups.
3.      Expand the domain.
4.      Expand Servers.
5.      Expand the server name.
6.      Expand Protocols.
7.      Expand SMTP.
8.      Right click on the Virtual SMTP Server.
9.      Left click on properties.
10.      Click on the access tab.
11.      Click on authentication button at top.
12.      the 3 check boxes we have selected are:
a.      Anonymous Access
b.      Basic Authentication (password sent in clear text)
c.      Integrated Windows Authentication
13.      Click on Users button at bottom of that screen
14.      Make sure authenticated users are listed.
15.      Click ok out of “Permissions for Submit and Relay window
16.      Click OK out of “Authentication” window
17.      Click on relay button at bottom of the “Default SMTP  Virtual Server Properties” window
18.      Select “Only the listed below” option. Ours we keep blank since everyone sends from either inside the company, or from across the VPN.
19.      We also have the box checked for “Allow all computers which successfully authenticate to relay, regardless of the list above.
20.      Click OK
21.      OK out of properties window.

That should take care of the Exchange server part. Now for the Outlook options. This only applies if the users’ Outlook is configured for pop. If they are setup to use exchange, then there is no need for setting up authentication type because they are already authenticated in just opening up the mailbox store when they open Outlook. Incase you have pop clients though, here are the steps.

1.      In outlook click on tools, and then email accounts
2.      Select view or change existing e-mail accounts at the wizard prompt and click next.
3.      Double-Click the appropriate account
4.      Click the more settings button near bottom right.
5.      Click on the Outgoing tab
6.      Select “my outgoing server requires authentication”
7.      Select “Use the same settings as incoming mail server

That should take care of the steps. As far as securing OWA, it works just like an Outlook client being configured to run connected to an exchange server. It already has the authentication embedded when you log on.