Enable auth login on smtp server exchange 2010

2 errors can happen:

a) “504 5.7.4 Unrecognized authentication type”
And, after was resolved, (b) happened:
b) “550 5.7.1 Client does not have permission to send as this sender”

504 5.7.4 Unrecognized authentication type
When using the AuthLogin authentication scheme in Application mail send. However, starting in Exchange 2010, the only authentication mechanism enabled is NTLM. On their Exchange 2003 server, they had other authentication schemes enabled. So, as soon as  upgraded to Exchange 2010, Application MailSend was throwing an exception, basically saying that AuthLogin was no longer supported.

2 solutions for this.
a) In the code, tell your app to use the NTLM authentication scheme. If you don’t want to change code base go to option (b):
b) Enable AuthLogin authenticaton on Exchange:
In the Exchange console under server configuration:
Select hub transport.
Right click  the client server and select properties.
Select the authentication tab.
Check the Basic Authentication checkbox.
Uncheck the Offer Basic only after TLS

May have to restart the Exchange services.

2nd Error:
550 5.7.1 Client does not have permission to send as this sender
This error happens because the FROM address the customer was using, was different than the Exchange mailbox they were relaying through.

Like the error message implies, this is a permissions issue. Go to:
a)From an Exchange Command prompt, run the following command:
Add-AdPermission -Identity “Default Receive Connector” -User “NT AUTHORITY\Authenticated Users” -ExtendedRights ms-Exch-SMTP-Accept-Any-Sender

b) On the user account, in Active Directory, under Security, under the SELF account, select the Manage Send As Permission option.

More info:
http://technet.microsoft.com/en-us/library/aa997170(EXCHG.140).aspx
http://www.advancedintellect.com/post/2011/03/02/Exchange-2010-and-SMTP-settings.aspx

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