Can't send external email via OWA

I have just installed and configured Exchange 2003 SP2. Internally incoming and outgoing mail works just fine. But when using OWA no one is able to send email to anyone external. Incoming email works just fine. The error that everyone gets is "You do not have permission to send to this recipient." This just applies to using OWA.  I am using a smart host to send mail.
greywindAsked:
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Mike ThomasConsultantCommented:
If you have just set this up I would be inclined to sit back and let things bed in a while, I know it sounds like a cop out but it does resolve a lot of issues and as your's does not make sense other than it being a new install that's what I think you should do first.
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greywindAuthor Commented:
This exchange deployment went live on the 19th of this month. Do you think it would take longer than that?
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greywindAuthor Commented:
Does anyone else have any ideas what might be happening here? Here is the exact NDR I get trying to send email externally via OWA.


Your message did not reach some or all of the intended recipients.

 Subject:      test
Sent:      3/31/2010 3:14 PM

The following recipient(s) could not be reached:

  xxxxxxx@gmail.com on 3/31/2010 3:14 PM
  You do not have permission to send to this recipient.  For assistance, contact your system administrator.
  <mail.xxxxxx.local #5.7.1>
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greywindAuthor Commented:
Sort of lame but I re-installed Exchange and now everything is working fine.
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