550 5.7.1 Unable to relay

I have added a second emsil domian to recepiant policy; still getting the 550 5.7.1 Unable to relay error
Running Exchange 2003 SBS.
Have chaecked Virtual smtp settings; all seems to be correct.
Here is an example of the returned messages

Included is a copy of the message header:
Received: from unknown [] (EHLO smtp201.iad.emailsrvr.com)
      by p02c12m066.mxlogic.net (mxl_mta-6.1.1-4) over TLS secured channel
      with ESMTP id 67f91f94.3500387216.440028.00-057.p02c12m066.mxlogic.net (envelope-from <user@test.com>);
      Fri, 24 Apr 2009 05:16:06 -0600 (MDT)
Received: from relay10.relay.iad.mlsrvr.com (localhost [])
      by relay10.relay.iad.mlsrvr.com (SMTP Server) with ESMTP id 56FE21EA5C5
      for <dcarter@problem.com>; Fri, 24 Apr 2009 07:16:06 -0400 (EDT)
Received: by relay10.relay.iad.mlsrvr.com (Authenticated sender: dennis-AT-houcc.com) with ESMTPA id 078541EBBE6
      for <user@problem.com>; Fri, 24 Apr 2009 07:16:05 -0400 (EDT)
Reply-To: <dennis@houcc.com>
From: "Dennis Cook" <dcook@houcc.com>
To: <dcarter@problem.com>
Subject: test
Date: Fri, 24 Apr 2009 06:16:02 -0500
Organization: Houston Computer Consulting
Message-ID: <00c001c9c4ce$0e4882f0$2ad988d0$@com>
MIME-Version: 1.0
Content-Type: multipart/alternative;
X-Mailer: Microsoft Office Outlook 12.0
Thread-Index: AcnEzg2RI0ZIyXUPSXmcB3w4wdGvMg==
Content-Language: en-us
Who is Participating?
Have you tried a telnet test inside your network to the server and see if you get the same error?

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