Can't send mail through secure smarthost on 2003

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I want to configure my Exchange 2003 server to use my ISP's SMTP server as a
smart host. They require a username and password to send SMTP mail and this
is giving me a problem. Here is what I did to setup the smart host and
username password.

Expanded Routing Groups-First Routing Group - Connectors
Right clicked on Internet Mail Connector
Chose Properties
On General Tab I selected "Forwar all mail through...."
Filled in "mail.myispserver.com"
Confirmed that the local server's default SMTP was in the bridgeheads
On the "Advanced Tab" I clicked the Outbound Security button
Changed from Anonymous to Basic Authentication
Clicked Modify
For Username and password I filled in
"admin@xxxxxxxxxxxx"
"mypassword"

After doing this all the mail just sits in the queue retrying. When I turn
off the smart host setup the mail goes through fine. What I thought I would
do to make sure my username and password are correct was to telnet in to the
server. Below is the session and it appears the username and password are
correct and that I can send mail.


TELNET Session -----

220 mail.myispserver.com [ConcentricHost ESMTP Relay 2/2.70] ready
ehlo myserver.com
250-mail.myispserver.com
250-PIPELINING
250-SIZE 20971520
250-STARTTLS
250-AUTH PLAIN LOGIN
250-AUTH=PLAIN LOGIN
250-ENHANCEDSTATUSCODES
250 8BITMIME
auth login
334 VXNlcm5hbWU6
{admin@xxxxxxxxxxxx in B64}
334 UGFzc3dvcmQ6
{My Password B64}
235 2.0.0 Authentication successful
mail from: admin@xxxxxxxxxxxx
250 2.1.0 Ok
rcpt to: someaccount@xxxxxxxxxxx
250 2.1.5 Ok
data
354 End data with <CR><LF>.<CR><LF>
test.
..
250 2.0.0 Ok: queued as 75D272AC6


Now finally I did another test just as above and used the same login info
and rcpt to info, but I change the mail from info to another user on my mail
server and I was rejected. I thought that if the login name and password
were fine it would not matter what the mail from name is, but it looks like
it does.



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