Keith,

You  are  relating two different problems, though you may not know it.
Let's start with the first one:

>The  message  could  not  be  sent  because one of the recipients was
>rejected   by   the   server.   The   rejected   e-mail  address  was
>'[EMAIL PROTECTED]'.   Subject  'test',  Account:  'myaccount',
>Server:  'mydomain.com',  Protocol:  SMTP,  Server Response: '550 not
>local host hotmail.com, not a gateway'

This  is an error generated by Outlook Express/Imail when you have not
provided  SMTP AUTH credentials that allow you to relay mail to remote
domains.  Check  in  the account setup in OE under "My server requires
authenticatiom."

The  second  problem:

>This  seemed  all well and good, but then I set up an email list. For
>this  list  I  allowed  anyone to post a message. I subscribed a user
>that  was  part  of  my  domain,  and this email address. The address
>inside  of  the domain had received the email, but the one outside of
>the domain did not.

Though  this  may  surprise  you, this is not the same relaying error.
Lists  are considered local users, even if they "explode" to contain a
mixture of local and remote users. What you're likely seeing is one of
many  vagaries  of  the Imail list server. What account did you use to
send to the list? Can you check the text files users.lst and users.txt
in  the  list's  home  directory to make sure that the subscribers are
really  in  there?  Does the list allow posting by Anyone? And can you
use  another  remote domain besides Hotmail, since their deferral rate
is insanely high and thus they pretty much suck as a test domain?

Sandy


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