Outbound email, but no inbound

Can anyone assist me i determining the actions needed to correct this issue:

Using a single nic, behing a Watchguard firewall

- Outbound email has been configured and is working.
- No inbound email
- Verified port 25 (tcp) open o firewall both ways
- verified using 'telnet maila.microsoft.com 25' and recv'd appropiate
response, then used 'ehlo microkey.com' and recv'd a bunch of 250 replies
- MX record on ISP's dns server, however the authoratative dns servers used
are those at our telco (not same dns servers).. NOTE: Recv'd email fine
under system we migrated from..
- Not really sure what I'm missing as everything seems to be setup
correctly...
- IS it necessary to have a MX record on the local dns server (SBS box)??

Thank you for any assistance o this matter!!


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