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550 5.7.1 Unable to relay

I have just set up a second domain name for exchange.  E-Mails send fine internally and they send outside the domain with this SMTP account.  The problem is for emails that come into the domain from another domain.  The senders from the outside domain receive this message:

550 5.7.1 Unable to relay for recipient jsprat@domain2.com (in reply
    to RCPT TO command)
Email ProtocolsExchange

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Veerappan Sundaram
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Veerappan Sundaram
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Exchange
Exchange

Exchange is the server side of a collaborative application product that is part of the Microsoft Server infrastructure. Exchange's major features include email, calendaring, contacts and tasks, support for mobile and web-based access to information, and support for data storage.

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