Setup Emails to send internally & externally using Exchange on SBS 2003 SP2

Hi all, forgive me if i'm new, or i've posted this incorrectly. This is my situation, Our current emails are hosted by our ISP. The Business wants to host their own emails from their SBS. How do i go about setting up this on the SBS 2003? The server we have was setup by someone else that is not working anymore with us. Our ISP says to setup an Exchange account. Have done that, configured exchange, created an exchange account in active directory whilst adding new user and also in outlook 2007. but now i;m trying to send internally but server keeps asking for a password. Any ideas on how to fix or work around this?? How do you do this(not a expert on this). I've thought about it, researched, only a handful of information. any guids to go by. Thankyou in advance, Thomas

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