We are having mail flow from hotmail.com servers to valecohomes.com.au.  The emails look to be failing through to the A record or using old DNS data.

I have no idea if the forum will help but have been referred here as the only avenue for support.

MX records were updated recently and point to valid servers.  Previous MX records had mail.valecohomes.com.au as a backup server but it was never configured to accept email fro the domain which was why it was removed.

A record valecohomes.com.au and mail.valecohomes.com.au:
206.217.137.18

Sending an email from hotmail intermittently fails with the following error:

Reporting-MTA: dns;bay0-omc4-s8.bay0.hotmail.com
Received-From-MTA: dns;BAY177-W38
Arrival-Date: Wed, 24 Jul 2013 17:13:51 -0700

Final-Recipient: rfc822;*** Email address is removed for privacy ***
Action: failed
Status: 5.5.0
Diagnostic-Code: smtp;550-Please turn on SMTP Authentication in your mail client, or login to the
550-IMAP/POP3 server before sending your message. 
550-bay0-omc4-s8.bay0.hotmail.com [65.54.190.210]:30043 is not permitted to
550 relay through this server without authentication.

I can reproduce the error by setting up a telnet session to their web hosting server listed on the A record and trying to send an email to it.  After the RCPT TO command it fails with the exact same message (spacing) which to me shows it is going through to the wrong server:

220-server1.austrodns.net ESMTP Exim 4.80.1 #2 Thu, 25 Jul 2013 10:28:42 +1000

220-We do not authorize the use of this system to transport unsolicited,

220 and/or bulk e-mail.

HELO 14-202-4-187.static.tpgi.com.au

250 server1.austrodns.net Hello 14-202-4-187.static.tpgi.com.au [14.202.4.187]

MAIL FROM: xxxxxxxxx@xxxxxxxxxxxx

250 OK

RCPT TO: *** Email address is removed for privacy ***

550-Please turn on SMTP Authentication in your mail client, or login to the

550-IMAP/POP3 server before sending your message.

550-14-202-4-187.static.tpgi.com.au [14.202.4.187]:12383 is not permitted to

550 relay through this server without authentication.



Since the MX records are correct in the DNS I have no idea how to troubleshoot any further with Hotmail admins.  Unfortunately, being the IT support for the company, it is reflecting badly on us even though it looks to be Hotmail's problem, as far as we can tell.

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