Hi,
I've Postfix 2.5.1 mail server on Ubuntu 8.04. Recently, I got a new SMTP relay service to send out my mails. But for some reason every time I try to send mail I get this error:
(host relay.somehost.com[<ip_address_hidden>] said: 550 5.7.1 <testmail@hotmail.com>... Relaying denied. Proper authentication required. (in reply to RCPT TO command))

Here is my postconf output:
-------------------------------------------------------------------------------
alias_database = hash:/etc/aliases
alias_maps = hash:/etc/aliases
append_dot_mydomain = no
biff = no
broken_sasl_auth_clients = yes
config_directory = /etc/postfix
home_mailbox = Maildir/
inet_interfaces = all
inet_protocols = ipv4
mailbox_command = /usr/bin/procmail
mailbox_size_limit = 0
mydestination = mydomain.com
myhostname = mydomain.com
mynetworks = 127.0.0.0/8 [::ffff:127.0.0.0]/104 [::1]/128
myorigin = /etc/mailname
readme_directory = no
recipient_delimiter = +
relay_domains = $mydestination
relayhost = [relay.somehost.com]:940
smtp_sasl_password_maps = hash:/etc/postfix/sasl_passwd
smtp_tls_note_starttls_offer = yes
smtp_tls_session_cache_database = btree:${data_directory}/smtp_scache
smtpd_banner = $myhostname ESMTP $mail_name (Ubuntu)

smtpd_helo_restrictions = permit_mynetworks, reject_unknown_client, reject_invalid_hostname, reject_unknown_hostname, reject_non_fqdn_hostname, permit

smtpd_recipient_restrictions = permit_sasl_authenticated, permit_mynetworks, reject_unknown_client, reject_invalid_hostname, reject_unknown_hostname, reject_non_fqdn_hostname, reject_unknown_sender_domain, reject_non_fqdn_sender, reject_non_fqdn_recipient, reject_unauth_destination, reject_unknown_recipient_domain, permit

smtpd_sasl_auth_enable = yes
smtpd_sasl_security_options =
smtpd_tls_CAfile = /etc/ssl/certs/cacert.pem
smtpd_tls_auth_only = no
smtpd_tls_cert_file = /etc/ssl/certs/smtpd.crt
smtpd_tls_key_file = /etc/ssl/private/smtpd.key
smtpd_tls_loglevel = 1
smtpd_tls_received_header = yes
smtpd_tls_session_cache_database = btree:${data_directory}/smtpd_scache
smtpd_tls_session_cache_timeout = 3600s
smtpd_use_tls = yes
tls_random_source = dev:/dev/urandom
unknown_local_recipient_reject_code = 550
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My sasl_passwd has the relay host with username and password. And I used postmap to make a db file of it.
Also, I tried this method to make sure that my user and pass are working:
perl -MMIME::Base64 -e 'print encode_base64("\000myuser\000mypass")'
And then tested with usual telnet method. It works. So the problem has to be with Postfix.

Any suggestions? Is there a way to do a higher level debug of Postfix.

Thanks in advance,
Nitin