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PHP mail generates error since Exchange upgrade

Recently upgraded to MS Exchange 2007 and PHP 5.
Have tried many different combinations of PHP but no change.

Originally was SMTP was set (in php.ini) to 'localhost' and returned this error:
Warning: mail() [function.mail]: Failed to connect to mailserver at "localhost" port 25, verify your "SMTP" and "smtp_port" setting in php.ini or use ini_set() in D:\xxx

Changed host to IP and now PHP script generating email returns this error:
Warning: mail() [function.mail]: SMTP server response: 501 5.1.7 Invalid Address: need fully-qualified address in D:\xxx

I've researched this error code but nothing seems realtive to this issue.

Trying to discover whether this is a known issue or particualr to our setup.

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8/22/2022 - Mon