After exploring exchange's smtp with telnet and tcpdump, my problem is that Mail.app is sending 'EHLO freya.local.', and that last . makes exchange cry. I guess if I had a properly assigned domain, ...
I made the mistake of allowing one of our developers admin access to a Win2003 server so he could "add smtp". Well, he didnt add smtp he added "email services" which is pop3. Not a big deal, I remove ...