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Exchange Receive Connector 530 Error

I am not able to receive any external email.   I telnet into the server telnet mail.mycompany.com 587, HELO gets response, MAIL FROM: email@mydomain.com gets;

530 5.7.1 Client was not authenticated
Connection closed by foreign host.

I verified that Anonymous was enabled in the receive connector, I even deleted and recreated the Receive Connector.

Nothing of note in the Eventlogs.

Any Ideas?

Thanks
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Sorry should have mentioned Exchange 2010 running on Server 2008R2
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External emails will be received on port 25. Default receive connector use port 25. Other connector is for non-MAPI clients such as POP and IMAP. Check to see if you have "Anonymous users" ticked in the permission groups tab or using EMS,
Get-ReceiveConnector -Identity "<Server name>\Default connector name" | fl PermissionGroups

then tick it if it is not. Hope this works.
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Solved own issue