>IP settings on the server are correct and DNS would appear to be set up
>correctly - Any Ideas? - as mails sent from the system are sometimes
>rejected by other mail hosts with a 501 Invalid Address message.

On further thought, you might have some of the pb's discussed here:

http://bind8nt.meiway.com/itsaDNSmess.cfm

ie, if your "HELO/EHLO hostname" and "MAIL FROM: sender@senderdomain" don't 
have A and/or MX records, some mail servers will decide "invalid hostname" 
and reject the SMTP mail.

Also, you should have the reverse zone setup at least for the ip of your 
mail servers.

Your ns has reverse authority for the mail.dialnet.co.uk ip:

# dig -x 193.164.97.17

; <<>> DiG 8.2 <<>> -x
;; res options: init recurs defnam dnsrch
;; got answer:
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 4
;; flags: qr aa rd ra; QUERY: 1, ANSWER: 1, AUTHORITY: 0, ADDITIONAL: 0
;; QUERY SECTION:
;;      17.97.164.193.in-addr.arpa, type = ANY, class = IN

;; ANSWER SECTION:
17.97.164.193.in-addr.arpa.  1M IN PTR  nt1.dialnet.co.uk.

.... but I suggest that you replace "nt1" with "mail" as the PTR data for 
.17, just to be paranoid.

Len

Len
http://BIND8NT.MEIway.com: ISC BIND 8 installable binary for NT4
http://IMGate.MEIway.com:  Build free, hi-perf, anti-spam mail gateways

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