I have a W2K3 Server we are setting up to run a Windows Service for a client
at their location.

I don't want this machine to go through exchange or their local mail server,
I just want the Server to send out a message from the SMTP Virtual Server to
me (in a different company) to tell me that some exception has happened in
our service.  The problem is that it creates an error about a relay:

Exception Type: System.Net.Mail.SmtpFailedRecipientException
FailedRecipient: <tomS@pd.com>
StatusCode: MailboxUnavailable
Message: Mailbox unavailable. The server response was: 5.7.1 Unable to relay
for tomS@pd.com
Data: System.Collections.ListDictionaryInternal
TargetSite: System.Net.Mail.MailWriter SendMail(System.Net.Mail.MailAddress,
System.Net.Mail.MailAddressCollection, System.String,
System.Net.Mail.SmtpFailedRecipientException ByRef)
HelpLink: NULL
Source: System

There is no mailbox here, just the virtual server.

The way I can make it work is to go into the properties for the SMTP Virtual
Server and go to Access/Relay and add 127.0.0.1 to only allow relay from
only this machine.

Is this the proper way to do it?

Thanks,

Tom