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Problems With Email Distribution Group

jhall0528 asked
I seem to be banging my head on what should be a pretty straighforward situation.
I am trying to create an email distribution group, I'll call it sales@mydomainname.com
This is what I've done so far;

1.) opened the exchange management console
2.) expanded recepient configuration
3.) Completed the new distribution wizard
4.) added a few emails addresses to the group

If I send an email from within our organization it works fine, however if someone outside
our organization attempts to email this email address "sales@mydomainname.com"
they get a bounce back;

#550 5.7.1 RESOLVER.RST.AuthRequired; authentication required ##

I'm running Microsoft Exchange Server 2007 .08.01.0359.002

Please advise what I've done wrong,

Thank You
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Alan HardistyCo-Owner
Top Expert 2011

If you run the following command in the Exchange Management Shell, you will overcome the new 'Feature' of Exchange 2007

get-distributiongroup | set-distributiongroup requiresenderauthenticationenabled:$false

This will set all distribution groups to not require authentication to receive mails from external sources.
Top Expert 2011
You can individually unset this option using the Exchange Management Console> Recipient Configuration> Distribution Group> Relevant Distribution Group Name Properties> Mail-Flow Settings Tab> Message Delivery Restrictions> Untick - "Require that all senders are authenticated".