>I'm getting a bunch of returned email, with FROM addresses of the original
>email various @yahoo.com addresses, and the original TO addresses all
>@aol.com addresses, obviously somebody is hihacking my server.

Not that obvious.

If you are getting the bounce messages, then your E-mail address was used 
in the "MAIL FROM" in the SMTP envelope.  They may or may not have used 
your server.

>How do I get it stopped before I get my IP's banned?

It is impossible to prevent them from using a fake return address at your 
domain, just as it is impossible to prevent someone from putting your 
physical address as the return address on an envelope sent via regular mail.

>I have set IMAIL SMTP Security Relay settings to "Relay for local hosts
>only".

Then spammers can send mail through your server -- you must use "No mail 
relay" or "Relay for Addresses".  Otherwise, spammers can pretend to have 
accounts on your domain, and easily send mail.

>What I want to do is allow about 40 hosted domain accounts to send
>email.  They all have their own dialup/whatever accounts so I thought it
>best to verify their FROM address.

Ah, but then spammers can use the same FROM address, no?

>Here is a message from aol with the returned spam, these will come from
>different FROMs:
>
>Reporting-MTA: dns; rly-zd02.mail.aol.com
>Arrival-Date: Thu, 18 Oct 2001 14:13:05 -0400 (EDT)
>
>Final-Recipient: RFC822; [EMAIL PROTECTED]
>Action: failed
>Status: 2.0.0
>Remote-MTA: DNS; air-zd01.mail.aol.com
>Diagnostic-Code: SMTP; 250 OK
>Last-Attempt-Date: Thu, 18 Oct 2001 14:13:26 -0400 (EDT)

Unfortunately, this doesn't provide any useful information.  It shows the 
address the E-mail was (likely) sent to, but it doesn't have the headers of 
the original E-mail.

                                                    -Scott
---
Declude: Anti-virus, Anti-spam and Anti-hijacking solutions for 
IMail.  http://www.declude.com


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