yes, currently you will relay mail to hotmail, gmail and yahoo accounts.

You should also consider something like spamdyke: A drop-in connection-time spam filter for qmail and/or using iptables to drop packets from the sources of the relay abuse.

Yeah...I've been reading about iptables and my programmer just told be about spamdyke. I'm still trying to get a handle on iptables but I'm sure I'll figure it out. At least I stopped the SPAM from being relayed....for now. Thanks for your help. It is much appreciated.

the best way to relieve smtp attacks are spamfilters, disabling smtp relay if it's enabled, or front it with a mail proxy type server and let it determine what's good and what's not. That will definitely take some strain off of the server. If you're trying to stop it from getting to your perimeter completely... good luck with that. Oh, and IPS with good smtp rules might also help.