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Dell OME SMTP Relay not working

We have Exchange 2007 with open relay allowed from internal systems such as Dell OME.  I can telnet to the SMTP relay connector from our Dell OME box and send an email.  However - when trying to test or send alerts via the OME console - we receive this error: 

System.Net.Mail.SmtpException:  Mailbox unavailable:  The server response was: 5.7.1 Client does not have permission to send as this sender.

Ideas?


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