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Port 25, which is used by SMTP instance not found

I am testing a new deployment of Exchange 2007 SP1 on W2K3 R2 x64 Server in a W2K8 AD environment. I am able to send emails out to external domains but am unable to receive at the mail domain. On running the MS Exchange Troubleshooting Assistant I get the Connectivity Error:  "Port 25, which is used by SMTP instance 'Default GREMAIL1', did not respond on server 0000." and "Port 587, which is used by SMTP instance 'Client GREMAIL1', did not respond on server 0000."
I am able to telnet into GREMAIL1 at port 25 and port 587 locally.
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BBRazz
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The out of the box installation of Exchange Server 2007 is tied down to not send/receive emails ironically.

Check the recieve-connector settings (http://technet.microsoft.com/en-us/library/aa996395(EXCHG.80).aspx). if you still have issues, can you paste the output of get-sendconnector and get-receiveconnector from the shell into here?
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All the connectors are configured as per the instructions in the technet article. Here is the output from Exchange Management Shell:

[PS] C:\Documents and Settings\administrator.GOODMANRE.000>Get-SendConnector
Identity AddressSpaces Enabled
-------- ------------- -------
Outgoing {SMTP:*;1}    True

[PS] C:\Documents and Settings\administrator.GOODMANRE.000>Get-ReceiveConnector
Identity                  Bindings      Enabled
--------                  --------      -------
GREMAIL1\Default GREMAIL1 {0.0.0.0:25}  True
GREMAIL1\Client GREMAIL1  {0.0.0.0:587} True
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ASKER

Yes, I can ping the server by name from another system and also telnet to the server on port 25 by name from another system on the same network.

Have attached connectors.txt

connectors.txt
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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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