Exchange Does Not Send External Mail

Posting this again as it is still unresolved.
I have a Small Business Server 2003 SP2 and Exchange has SP2. Every email sent from Outlook 2000 results in the following NDR within a second or two from clicking send.

The recipient could not be processed because it would violate the security policy in force
<myserver.local #5.7.0 smtp;530 5.7.0 Authentication required>

Same result for OWA.
Same result with or without a Smart Host.
No changes to to Exchange in months. I am told the domain hosting company did make some unknown change about the same time this problem began. I do not understand how this could be a factor because the bounce happens to fast for it to come from the hosting companies server.
johncfds
johncfdsAsked:
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johncfdsConnect With a Mentor Author Commented:
PROBLEM SOLVED
The ISP changed the dymanic ip address and the Smart Host being used by the SBS SMTP Connector now requires authentication.  Deleted the SBS SMTP Connector, used the Default SMTP Virtual Connector with a new Smart Host with the proper credentials.
Thanks to everyone for their suggestions!
John.
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HallidaysCommented:
It is the local exchange, there is a policy in force stopping this, are you sure nothing changed around the time of this starting?

"The recipient could not be processed because it would violate the security policy in force
<myserver.local #5.7.0 smtp;530 5.7.0 Authentication required>
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johncfdsAuthor Commented:
As certain as I can be nothing changed.  Do you think it is a group policy ot recipient policy?
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HallidaysCommented:
Definately not a GP, I would say recipient policy - you can send into the exchange without problems?
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johncfdsAuthor Commented:
No complains about internal mail.  I will check the recipient policy thanks.
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johncfdsAuthor Commented:
Yep, internal mail works fine.
The recipient policy looks perfectly normal.
????????????
John.
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HallidaysCommented:
Does it work from Outlook 2003 clients?
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johncfdsAuthor Commented:
There are no Outlook 03 clients.
UPDATE: I had overlooked the SBS SMTP Connector.  It was setup to forward mail to a smart host that I suspect is did not previously require authentication.  I will delete this connector on next visit and the let the Default SMTP Virtul Server send outgoing mail.
More later.
John.
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johncfdsAuthor Commented:
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