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Exchange server is rejecting messages from msn and hotmail

I have an SBS 2003 server running Exchange 2003 SP2. Several days ago we started receiving reports that some users (so far only hotmail and msn that I know of) are unable to send email to our domain. They get a bounced message like the following:

Reporting-MTA: dns;bay0-omc2-s32.bay0.hotmail.com
Received-From-MTA: dns;BAY101-W52
Arrival-Date: Thu, 19 Feb 2009 20:15:42 -0800

Final-Recipient: rfc822;administrator@denverspine.com
Action: failed
Status: 5.7.1
Diagnostic-Code: smtp;550 5.7.1 <administrator@denverspine.com>... Relaying denied. Proper authentication required.

I have tried sending from hotmail as well and get this exact message. Nothing has changed recently in our Exchange configuration. Any ideas?
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wearekerr
Asked:
wearekerr
2 Solutions
 
MesthaCommented:
I don't think that is an Exchange message.
That domain appears to have its email with MXLOGIC. Are you sure that it is Exchange that is rejecting the email and not MXLOGIC ?

-M
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wearekerrAuthor Commented:
Thanks, Mestha.

MXLogic is our spam filter. Our MX records point to their server, then it's delivered to our Exchange server. My understanding is, however, than when MXLogic blocks a message it doesn't send any kind of NDR to the sender. I will check with them, though.
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MesthaCommented:
You need to establish that first. MXLOGIC wouldn't send NDRs back on spam, but if they are rejecting email at the point of delivery then it would be good practise to NDR it, just in case it is valid.

The error is what i would normally expect to see if a server was being used for authenticated relaying only, not for general inbound email.

-M
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wearekerrAuthor Commented:
MXLogic assures me that this is not their doing. I may change the MX records to send mail direclty to us to be sure.
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team170Commented:
This exact problem is happening to our domain as well. Started a few weeks ago. Attached is my NDR received after a test message. So far no help from MSN/Hotmail and only a few other reports I can find of this happening to others. We use Appriver for spam filtering. They say there's no record of the emails ever being sent, so they're not getting caught as spam (and even if they were, they would not bounce). BTW, testaccount101 is no longer valid, but was at the time and received mails from other senders.

Reporting-MTA: dns;bay0-omc2-s18.bay0.hotmail.com
Received-From-MTA: dns;BAY106-W13
Arrival-Date: Thu, 5 Mar 2009 17:40:38 -0800

Final-Recipient: rfc822;testaccount101@dalbycpa.com
Action: failed
Status: 5.7.1
Diagnostic-Code: smtp;550 5.7.1 Unable to relay for testaccount101@dalbycpa.com
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wearekerrAuthor Commented:
I double checked with MX Logic. They keep logs of every message that enters their system, whether it's accepted or rejected. No emails from Hotmail or MSN were rejected. It showed that occassionaly one went through though. I sent several test messages from my hotmail account to our domain and all of them bounced. None of them showed up in the MX Logic logs. Nevertheless, I changed our MX records so that mail was delivered directly to our server, bypassing the spam filter all together. The result was exactly the same.

I did manage to get in contact with some people at Hotmail, who supposedly were looking into it but never received any solution from them. In the meantime I set up a second domain with the same registrar and nameservers. When I set it up in Exchange and tried sending test messages to it from Hotmail I got the same results. That got me wondering if there was some issue with the nameservers so I changed our nameservers from DirectNIC to DNS Made Easy and that fixed it. Don't really know why, but we haven't seen the problem since.
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wearekerrAuthor Commented:
The issue has been resolved by me.
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mtn_lionCommented:
This exact behavior suddenly started three days ago at one of my clients--inbound messages from hotmail/msn getting rejected with "Proper authentication required".  Then just this morning, an msn subscriber who sends to both that client and to me told me that her message to ME got rejected.  Both the client and I have Exchange 2003 SP2...and both of us have DNS at the same vendor.

I'd prefer not to move DNS.  Any chance that, since this issue was posted in 2009, someone has determined exactly what the underlying cause is?
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