Unable to send email to Mail Contact in Exchange 2007

I created a Mail Contact in Exchange 2007 server. But when i try to compose and send a email to the mail contact, the recipient mail server rejects the email as "Relay Access Denied", but when I send an email to the recipient's email address, the email gets delivered successfully.

Any suggestions?

A communication failure occurred during the delivery of this message. Microsoft Exchange will not try to redeliver this message for you. Please try resending this message later, or provide the following diagnostic text to your system administrator.

The following organization rejected your message: VA3EHSMHS031.bigwhale.com.
Sent by Microsoft Exchange Server 2007

Diagnostic information for administrators:

Generating server: pigeon.zentree.lan

VA3EHSMHS031.bigwhale.com #550 5.4.1 Relay Access Denied ##rfc822;info@zentreecompany.com

Original message headers:

Received: from pigeon.zentree.lan ([::1]) by pigeon.zentree.lan ([::1]) with
Who is Participating?
viveksahuConnect With a Mentor Commented:

Can you check the option my server require authentication option in outlook or express.

    Click Tools then Account Settings
    Ensure you are on the E-mail tab at the top of the windows
    Click on the relevant email account and click Change... at the top of the window
    Click More Settings
    Click Outgoing Server
    Check My Server Uses Authentication
    Select Use same settings as my incoming mail server - in certain cases where this doesn’t work you may need to click on log on using and:
        Type Account Name (which will be your full e-mail address)
        Type Password (which will be your email address password)
    Click OK
    Click Next
    Click Finish
    Click Close

sidartraAuthor Commented:
Hi, it wasn't smtp authentication as I am sending via Outlook 2003 Exchange client. I made several changes to the server certificate but I am not sure if it was a server certificate issue.

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