Why are users getting error: Relaying denied: You must check for new mail before sending mail?

Windows SBS Server 2008
exchange 2007 SP3
This morning my users stopped being able to send and receive mail. When someone outside the organization attempts to send them an email they receive:Relaying denied: You must check for new mail before sending mail.

I ran through mxtoolbox.com and received the same message. I have restarted the server twice, restarted the information store, checked the permissions, restarted hub transport, and created a new receive connector.

Can anyone help with this?
enfusetechAsked:
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KimputerConnect With a Mentor Commented:
Are you sure your server is sending this message back to the users? Check on the mail server, with Wireshark on port 25. Send an email from gmail or something else. If the mail bounces, while you DO NOT see EXACTLY that email (identified by the FROM header), the mail was delivered somewhere else, and you probably have to fix your MX records.
That's because I suspect while misconfigured Exchange servers can deny relays, the second part ("You must check for new mail before sending mail") are usually from ISP/linux based mail servers for the masses (combined with POP3/IMAP services)
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Adam BrownSr Solutions ArchitectCommented:
Does your receive connector have Anonymous checked on the Permission Groups tab?
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enfusetechAuthor Commented:
Yes everything is checked except legacy
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enfusetechAuthor Commented:
I will look into into.  I am wondering if AT&T had an update which may have changed the MX records. Unfortunately no one knew the password for the hosting panel.   I will let you know what I find.
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enfusetechAuthor Commented:
Thanks for the reply. AT&T "upgraded" their hosting control panel and it changed all of the dns records. I am moving them to my hosts immediately.  Thanks.
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