SBS 2003 - SMTP Connector refuses to send out any email

We recently moved a couple of domains onto a new POP3 server, and added
additional POP3 connector details on SBS 2003 to pick up emails.

However, we encountered event ID 1070 which means the Exchange Server picked
up the emails then decided it didn't know what to do with them and deleted
them. I don't know why it would decide this since the domain names were
exactly the same as the previous setup, we simply added 4 more entries in
POP3 Connector!

After completely losing a number of emails, we used this article to add
addresses to the SMTP connector:
http://support.microsoft.com/default.aspx?scid=kb;en-us;Q842293

All worked fine until around 20 hours later when staff starting getting
undeliverable messages for each email they sent out, similar to this one:

Your message did not reach some or all of the intended recipients.

Subject: test12
Sent: 23/01/2007 10:29

The following recipient(s) could not be reached:

bob@xxxxxxx on 23/01/2007 10:29
There was a SMTP communication problem with the recipient's email server.
Please contact your system administrator.
<server.domain.local #5.5.0 smtp;550-Verification failed for
<Administrator@xxxxxxxxxxxx>>

We have since tried over 30 different configurations, including using SMTP
via the ISP with anonymous access, adding security, recreating the SMTP
connector ... but apart from some slight changes in error message wording it
has stayed the same (for example, "Callout Verfication Failed" at the end of
the message).

For testing purposes we have set up Thunderbird on the Server with a POP3
account on the same domain and got it to successfully send a receive using
the SMTP server from the ISP and the and the smtp.domain.com address.

We are tearing our hair out at the moment, and it's taken up over 20 hours
of my time in the last week ... so if anyone can help I would be incredibly
grateful!

Thanks in advance :)


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