>What we have discovered is that while it is possible to receive e-mail
>addressed to the alias and even send e-mail to other addresses on the
>server from the alias address it is NOT possible to send email to an
>outside destination using the alias as apparently the current setting
>"Relay for Local Users Only" refuses the transmission.

That's one of many reasons not to use "Relay for Local Users Only" (which, 
BTW, really means "Relay for anyone claiming to be a local user, so any 
spammer anywhere in the world can relay for free").

>This seems a bit inconsistent to me.  It appears to validate the addresses 
>only on users and
>does not validate on aliases.  I am sure I will be told this is by design,
>but my instinct tells me it was an oversight.

It doesn't seem inconsistent to me.  You are telling IMail that 
"[EMAIL PROTECTED]" doesn't really exist, and should be delivered to the 
real user "[EMAIL PROTECTED]".  If [EMAIL PROTECTED] doesn't really exist, 
it shouldn't be sending mail.

Also note that [EMAIL PROTECTED] (the alias) doesn't have a password, so 
they couldn't use SMTP AUTH to send authenticated mail, and they can't 
receive mail.  So I think it actually is consistent to not treat them as a 
local user.

>Question 1.  Has this been addressed in version 7.0x?

I don't think it NEEDS to be addressed.

For what you are doing, you should have a real account, and the "fake" user 
can set up her E-mail client to receive mail from that account.  Then it 
will be a real account, and she can send from it.

>Question 2.  We are about to change over to "no relay"

Very good!

>and have all the
>users use SMTP Authentication to close the last gates as a result of the
>attack we saw this weekend with the spam relay that got by us and we still
>do not fully understand how.

See above; your current settings allow spammers to send mail through your 
server.

>In this case, would the mail to the outside
>destination be allowed from the Alias or would it STILL be blocked?

It would HAVE to be blocked -- IMail can't match a password to an account 
that doesn't exist.

>Question 3.  Is there something we may be overlooking that is causing the
>blockage of the e-mail

No, I am sure it is by design.

                                                    -Scott
---
Declude: Anti-virus, Anti-spam and Anti-hijacking solutions for 
IMail.  http://www.declude.com

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