email bouncing

From: billyw (b_at_brainless.net)
Date: 07/22/04 

Date: Thu, 22 Jul 2004 17:26:01 +0100

hi..

currently got sbs 2k set up that is getting emails bounced from one
particular outside recipient.
error message is:
There was a SMTP communication problem with the recipient's email server.
Please contact your system administrator.<xxxxxserver.xxxxxxx.local #5.5.0
smtp;550 Access denied>

i've looked this error up, but i'm unsure what changes to make in exchange

in advanced delivery (default virtual smtp server props)
nothing for masquerade.
xxxxxserver.xxxx.local for fqdn
nothing for smart host, but added isp's smtp server.
and ticked attempt direct delivery before smart host.

email is recieved via catchall account and downloaded via pop3 to server.

i'm guessing that the recipient is not able to verify dns info and therefore
rejecting message

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