Response: 550 Relaying not permitted (3.7) HELP!

We're using GW7.01; this user has a laptop but only uses webmail when out of the office.  He sent an important message to three addresses, and cc'd another ten.   Can someone explain what this realying problem would be?  he has successfully sent messages to these users at other times.  I've included a portion of the GWIA log file (changed domain names for security).  

12:49:03 1C7 MSG 8938 Analyzing result file: TEEGW/SYS:\DOMAIN\WPGATE\GWIA\result\r61cd920.004
12:49:03 1C7 MSG 8938 Detected error on SMTP command
12:49:03 1C7 MSG 8938  Command:  RCPT TO:<mezic@powerconc.com>
12:49:03 1C7 MSG 8938  Response: 550 Relaying not permitted (3.7): jmezic@powerconc.com
12:49:03 1C7 MSG 8938 Detected error on SMTP command
12:49:03 1C7 MSG 8938  Command:  RCPT TO:<shave@powerconc.com>
12:49:03 1C7 MSG 8938  Response: 550 Relaying not permitted (3.7): shave@powerconc.com
12:49:03 1C7 Building undeliverable message
12:49:03 1C7 MSG 8938 Building message: s61cd93f.009
12:49:03 1C7 MSG 8939 Analyzing result file: TEEGW/SYS:\DOMAIN\WPGATE\GWIA\result\r61cd920.005
12:49:03 1C7 MSG 8939 Detected error on SMTP command
12:49:03 1C7 MSG 8939  Command:  RCPT TO:<jmcc@studiosx.com>
12:49:03 1C7 MSG 8939  Response: 550 Relaying not permitted (3.7): jmcc@studiosx.com
12:49:03 1C7 MSG 8939 Detected error on SMTP command
12:49:03 1C7 MSG 8939  Command:  RCPT TO:<sue@studiosx.com>
12:49:03 1C7 MSG 8939  Response: 550 Relaying not permitted (3.7): sue@studiosx.com
12:49:03 1C7 Building undeliverable message
facutvivoAsked:
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WMIFCommented:
these messages are showing when using webmail?  are you sure the user is not trying to use outlook/outlook express to point to your smtp server from outside?
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facutvivoAuthor Commented:
these messages are from the gwia log.  he's not using outlook.  This is happening inside our network using the GW client.  He's seeing in Sent Items that message is Pending.
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WMIFCommented:
sorry thats all i had.  im not a ?groupwise? guy.
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