External emails not going through to internal distribution group


I have created a distribution group in win SBS 2k3 server (Exchange 2k3) which works fine for internal users but for external users they get the following error:

From google:

"Technical details of permanent failure:
Google tried to deliver your message, but it was rejected by the recipient domain. We recommend contacting the other email provider for further information about the cause of this error. The error that the other server returned was: 550 550 Rule imposed mailbox access for logistics@xxxxx.com.au refused: user invalid (state 17)."

I have set the setting to receive emails externally however i still get error messages.

Any help would be great.

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Madan SharmaConnect With a Mentor ConsultantCommented:
Here is another way to accomplish your task
1. Just Create a contact of that outside e-mail address in your ADUC
2. Go to your distribution group properties
3. Under Exchange general tab select only from and click on add
4. All your local users and that contact with external e-mail id

its safe way to receive mail only from known outsider and unknown will not be able to send mail to your group.

Madan SharmaConsultantCommented:
you need to allow external users to send mail from outside users and need to set the following settings:-
Select a group -> Properties -> Mail Flow Settings -> Message Delivery Restrictions -> Properties -> Untick “Require that all senders are authenticated”
also have a look at http://social.technet.microsoft.com/Forums/en-US/exchangesvrgeneral/thread/56e342e4-1aed-4164-a7b9-0e5fabf102f0/
Hendrik WieseInformation Security ManagerCommented:
Do the following:

1. Click Start, point to Programs,
2. Click Administrative Tools, and then click Active Directory Users and Computers.
3. Now browse to the distribution group and Right-click then select Properties.
4. Click the Exchange General tab.
5. Under Message restrictions, uncheck From authenticated users only check box.

Hope this helps!!
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J3D1-KN1G1-1tAuthor Commented:
Hi Guys,

Thanks for the responses.

Under Message restrictions, "from everyone" is already ticked( was ticked from the start).

Madan SharmaConsultantCommented:
you need to uncheck the From unauthenticated users..
Hendrik WieseInformation Security ManagerCommented:
Please see image below:

The following tickbox that is highlighted needs to be deselected:
 Untick Box
I don't think that exchange distribution group are recognized as <to> for smtp protocol, which is used by external mail servers, to do that you need to make a mailbox and then set it up to forward his incoming emails to that group

Group Resolver is an privileged  process on the server, external email servers like gmail access your server as anonymous.

good luck
J3D1-KN1G1-1tAuthor Commented:
Hi Akicute555,

Under properties i dont see "mail flow setting" on exchange 2k3. I access this group via server managerment-> distribution group and also via Active directory.

J3D1-KN1G1-1tAuthor Commented:
Hi HendrikWiese "From authenticated users" was already deselected.

Fryezz - Can you please tell me how i can set the <to> smtp protocol for groups.

Thanks for the responses.

FarWestConnect With a Mentor Commented:

you can not control that, this is how other email servers talks to your email server,
you can make a workaround by creating a mailbox and in mail delivery option is set to forward emails to the distribution group

so you will have for example esales@yourdomain.com as a mailbox (not group) and have sales@yourdomain.com as distribution group, esales@yourdomain.com will forward all incoming emails to sales@yourdomain.com
Madan SharmaConsultantCommented:
I am using above mention solution with one of my client and working fine from years ago
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