Exchange 2003 NDR #5.7.1 and event 7004

Hi,  I hope yall can help.

We have an exchange 2003 environment (Native Mode). I have a few users accross the company that get NDR #5.7.1  which basically says"You do not have permissions to send to this recipient..."
This does not happen all the time, just occasionally.  They are able to send to the same address ok, but then some times they get the NDR.  I check the event logs and we are getting alot of EVent 7004 errors.  Which says "This is an SMTP protocol error log for virtual Server ID 1, connection #310.  The remote host "xxx.xxx.xxx.xxx", responded to the SMTP command sent "xexch50" with "504 Need to authenticate first".  The full commad sent was "XEXCH50 2144 2".  This wil probably cause the connection to fail.  
I do not know if these two issues are related.  I do not think so, because we are getting this event every few minutes or so, and the NDR's are not near that often, maybe one every few days.  I have looked at various articles and have had no luck.  Has anyone seen this before?  Any Ideas?
This is difficult because it is random, at least the NDR #5.7.1. is.  An interesting note, when looking at articles for the event ID 7004, The remote host has a FQDN.  I get only IP's.  Not sure if that has any meaning.  I did read some where that its possible DNS issue.  Please help!
Louis-AdamsAsked:
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BNettles73Connect With a Mentor Commented:
Leaving this here in case someone comes across the question and wonders what the probable solution was:

The user never really responded but given the NDR there were other possibilities:

Permissions problem is the primary cause for 5.7.1.  For some reason the sender is not allowed to email this account.  Perhaps an anonymous user is trying to send mail to a distribution list. Check SMTP Virtual Server Access Tab.  Try checking this box: Allow computers which successfully authenticate to relay
User may have a manually created email address that does not match a System Policy.

The second possiblitity is delivery restrictions or as I mentioned earlier to check the reverse PTR record. Some ISPs do not allow you to send email through their networks if you don't have a reverse PTR.

It could have also been issues with the recipient policy. Review, reconfigure, rebuild if necessary.

Brian
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BNettles73Commented:
I saw this but it was more for E2K ... probably not much help but interesting http://support.microsoft.com/default.aspx?scid=kb;EN-US;283287


Also, make sure you have a reverse PTR record setup for your MX ... I'll check back this weekend and try to give you some other ideas ... a bit busy with migration tonight so don't have much time ...

Brian
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sewellcmCommented:
We are currently experiencing this same exact issue and can not find resolution to it on Microsoft's site or here. Has anyone else had any luck on this to date?

Thanks.
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