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Office 365 SMTP relay issue

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We have a virtual SMTP relay configured to send emails from our printers and invoice's. I setup the server to relay to office 365 under a valid SMTP address under my credentials. Everything seems to be working well but we keep getting alot of mail just sitting in the

C:\inetpub\mailroot\Queue& BadMail folders.

Anybody know whats causing this? I blanked out some info

This is part of one of the errors in the badmail folder. Anything bold I changed.

This is a MIME-formatted message.

Portions of this message may be unreadable without a MIME-capable mail program.

--9B095B5ADSN=_01CF6638455AE5FB000000C2MYDOMAIN.

Content-Type: text/plain; charset=unicode-1-1-utf-7

This is an automatically generated Delivery Status Notification.

THIS IS A WARNING MESSAGE ONLY.

YOU DO NOT NEED TO RESEND YOUR MESSAGE.

Delivery to the following recipients has been...


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