troubleshooting Question

Exchange SMTP communication problem after Windows Server 2003 SBS on different ISP "There was a SMTP communication problem with the recipient's email server" "relay access denied"

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4RunnerBobFlag for United States of America asked on
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This is a Windows Server 2003 (Small Business) running Exchange.  Mail is hosted off-site by the original ISP.  All users are running Outlook 2003, configured to use Exchange as the primary email account, with a secondary pop3 account to allow email delivery when not connected to Exchange.

Email has been working fine, until everything was moved to a new ISP.  The email is still hosted by the original, and is working for pop3 clients.  

When attempting to send email messages from Outlook 2003 using the default Exchange account, the user receives an email from the System Administrator telling them:

{message shown below in its entirety}

Your message did not reach some or all of the intended recipients.

     Subject:       TEST
     Sent:           9/11/2006 7:14 AM

The following recipient(s) could not be reached:

     John Smith on 9/11/2006 7:14 AM
          There was a SMTP communication problem with teh recipient's email server.  Please contact your system administrator.
          <emailserver.net #5.5.0 smtp;554 <john@smith.net>: Relay access denied>

{end error message}
NOTE:  The email server, address, and recipient have been changed to protect their privacy; otherwise the message is accurate.

We have checked numerous settings in Exchange, and think this problem may be related to authentication with the previous ISP that is hosting the email and domain for this client.  

Where do we configure the authentication for Exchange, to avoid the "relay access denied" message?
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