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Exchange Local SMTP Relay

Exchange 2007

By default, the Default Receive Connector will not relay mail for anonymous users or devices. They get an error like:

530 530 5.7.1 Client was not authenticated (state 13)

Go to Hub Transport under Server Configuration in Exchange Management Console.
On the Receive Connectors tab double-click the Default connector.
On the Permission Groups tab make sure that your Exchange Server has the following boxes checked:
- Anonymous users
- Exchange users
- Exchange servers
On the Authentication tab, make sure that you uncheck the box under Basic Authentication that says “Offer Basic authentication only after starting TLS.”
Restart Hub Transport service.