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When mails are being sent to my exchange 2007 server (from gmail) they are being returned with the message

Technical details of permanent failure: Google tried to deliver your message, but it was rejected by the recipient domain. We recommend contacting the other email provider for further information about the cause of this error. The error that the other server returned was: 530 530 5.7.1 Client was not authenticated (state 13).

What can be causing this?

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Generally this is because the eternal mailer (Gmail in this case) attempted to send email anonymously, when Exchange was expecting an authentication. This is generally the result of the internet-facing server (Edge or Client Access) not having a correctly configured Receive Rule for handing Internet-sourced email. The stated error messages are the kind Exchange throws when it is denying relay services to an incoming connection.

Check the "Network" tab on your Relay Connector to ensure that the entire IPv4 space is included in it (or if you're extra special lucky, the IPv6 space as well). Also check around to see if it is just Gmail, or other mailers are also throwing the error.

IIRC, by default Client Access servers are NOT configured to receive mail from the Internet without authentication, but Edge servers ARE.

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If the address being mailed is a distribution list the default is to reject unauthenticated requests. (Don't allow external users to email distribution lists). If you want to allow this you'll need to uncheck the "require authentication" checkbox in the distribution list under "Mail Restrictions"

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