SMTP-AUTH problems with Exim4 on Sarge

["David Mummery" <dmummery@accessit.co.uk>]

Dear all -

Currently running Sarge with Exim 4 and am unable to successfully configure
SMTP-AUTH.

Have installed sasl2-bin and libsasl2-modules, modified /etc/default/saslauthd
to contain:

START=yes
MECHANISMS="pam shadow"

And have uncommented the 'plain_saslauthd_server' authentication section in
exim4.conf.template

Added Debian-exim to the sasl group.

Ran dpkg-reconfigure exim4 and restarted exim4, no errors reported.

Am still unable to send email from email client when 'server requires
authentication' is ticked (Outlook Express for example) and email client is
located on an untrusted subnet. The standard error 550 relaying denied
appears.

What am I doing wrong?

Thanks!

David Mummery