Exchange 2007 eMail Relay problem

After reviewing what seems like hundreds of articles here and elsewhere, I'm still missing something.  Hopefully one of you can help.  We moved from Exchange 2003 where we had no problems with this to Exchange 2007.

SQL Reporting services is running on another server and is configured to send emails via SMTP through our Exchange Server (the IP address is in the SSRS configuration).

We have added the SSRS ip address to  exchange server as follows.  Note that the exchange server is a single server environment with no "Edge" role configured:

1 - Organization Config/Hub Transport/Global Settings/Transport Settings/Message Delivery
2 - Server Configuration/Hub Transport/Receive Connectors for both client and default

At this point, report subscriptions will only be received by our exchange users, but not external addresses.

What am I missing?

Thanks in advance for your consideration!

dpav29Asked:
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Rick FeeMessaging Engineer - Disaster Recovery EngineerCommented:
Here you go you want to setup custom recieve connector only for the IP of your SQL reporting server.   Here is a good article to follow:
http://msexchangeteam.com/archive/2006/12/28/432013.aspx
 
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dpav29Author Commented:
Thanks for responding.  That's the exact article I used to set this up. . . there's still something missing as I can't get external addresses to go.  Any other ideas/suggestions are appreciated.
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Rick FeeMessaging Engineer - Disaster Recovery EngineerCommented:
The SQL reporting services is local to your Exchange server?   Do you see the email caught in the outbound queue?
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dpav29Author Commented:
They are not local.  Both servers are hosted outside our organization (seperate dedicated servers), but I have referenced the IP address of the exchange server in Reporting Services manager, and vice versa.  The messages never make it to the outbound queue. . .Reporting services manager errors with "one or more email address is invalid".  Of couse, that only happens when an email address is not an exchange mailbox.
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Rick FeeMessaging Engineer - Disaster Recovery EngineerCommented:
On the Exchange server create an accepted domain under Org Config -->  Hub Transport -->  Accepted Domains.   Setup as an External Relay domain or Internal Relay will work I believe.
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dpav29Author Commented:
Thanks for your input.  I had already done the things indicated in those articles.  The problem ended up being an SMTP issue.  It wasn't intuitive and not sure why Exchange 2007 makes it so difficult (was a breeze in 2003).  Here's the solution used:

1) Install SMTP service - needed a couple Win2003 sp2 install files; locked it down using IIS management console
2)Modify Report Server config file (C:\Program Files\Microsoft SQL Server\MSRS10.MSSQLSERVER\Reporting Services\ReportServer\rsreportserver.config ):
  a.      C:\Inetpub\mailroot\Pickup
  b.      1
  c.      reports@[my domain].com
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