I was poking around, setting some things, that I thought used to be set, but then got turned off... Anyhow, short version:
What exactly does "AUTH_REQUIRED" do in the etc/esmtpd file ?
It requires anyone connecting via SMTP to the server to authenticate themselves.
However, when I turn it on, it appears to lock out EVERYTHING that is either trying to deliver OR relay from the server. Kinda wrong behavior I would think?
Nope. If the client authenticates, they'll be able to deliver and relay, just like the option's description says.
So, begs the question, then how do I set it to just clients? And not for mail being delivered to clients from outside mail servers?
Do nothing. This is already the default configuration.
pgp00000.pgp
Description: PGP signature
