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How to enable a domain member server to route email externally via Exchange 2007

Hopefully this is a simple fix!

I have an application server on our network which needs to send email via our Exchange 2007 server to external recipients. However, when I try to perform this function the process halts with the following error..

550 5.7.1 Unable to relay

I've re-tried the process using an internal recipient and the email message is successfully relayed.

I assume there's something I need to change in order to allow a domain member server to send email externally via Exchange, but for the life of me I can't find the settings required.

Any help appreciated!!

Neil
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Vipin Vasudevan
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Open the Exchange System Manager;
 
Go in Administrative Groups -> Administrative group name -> Server -> Server name -> Protocols -> SMTP;
 
Right click on Default SMTP Virtual Server -> properties;
 
Access tab -> Relay buttom;
 
Select "only the list bellow" and add your domain and\or IPs you do want to allow the relay
 
 and finally check  the "Allow all computers witch successfully authenticate to relay, regardless of the list above" checkbox.
In the exchange 2007 management console you need to add the sending member server's ip adress to the recieve connector in "server configuration"-"hub transport" menu.
apology!! I didnt noticed your Exchange 2007.... yup zulumike is right in that case...
SOLUTION
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Rajith Enchiparambil
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Really quick response! Superb!!