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503 valid RCPT command must precede DATA on Exchange 2003 using Outlook 2007

Here's an email that came back:

     user@mail.ru on 10/28/2008 2:27 PM              There was a SMTP communication problem with the recipient's email server.  Please contact your system administrator.              <domain.com #5.5.0 smtp;503 valid RCPT command must precede DATA>  


after some research it seems that acceptable workaround for this to enable"my server requires authentication" for a pop3 box. however my users are using a exchange server without pop3 connector. i see the following options under Outlook 2007 exchange options> security > network security: negotiate authentication, kerberos, ntlm.

Whats the proper authentication method to fix the issue stated above? sorry this is a live server and I dont want to play test and trial game on this one.
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Hayes Jupe
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riaz307

HI Sir,

i'm also getting the same error   503 valid RCPT command must precede DATA i'm using  outlook 2007 and  connection type is pop i tried all the website also nothing is working i even tried my server requried authentification still does not work my mail server is in linux and few staff getting this error rest all fine

please help me sir..

thanks in advance