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exim mailer and QPOP



hello everyone !
  i just finished configuring DNS, exim and QPOP.  i can successfully send and receive email from it (thats what im doing here) but only when i telnet to my server.  when i check my email from another machine however, that is, a winblows machine using eudora or netscape, i can only receive/retrieve emails but not send.
  when i try to send thru eudora, i get the following message :

" The recepient "email@hotmail.com" is not acceptable to your SMTP server.  The message is not sendable until the recepient has been changed. "

  id really appreciate it if someone can help me on this, any pointers as to what could be causing this and how to solve this will be very much appreciated.

  thanks a lot,
Chad


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