Error 503 This mail server requires authentication when attempting to send to a non-local e-mail address

issue:
Yes the incoming and outgoing is mail.whalleywebsites.co.uk i just received some emails that is now working, but i just sent an email to my hotmail and it bounced back with the below email
 
Yes Your message did not reach some or all of the intended recipients.
 
      Subject:    test
      Sent: 23/02/2011 09:26
 
The following recipient(s) cannot be reached:
 
      'bloggs@hotmail.com' on 23/02/2011 09:26
            503 This mail server requires authentication when attempting to send to a non-local e-mail address. Please check your mail client settings or contact your administrator to verify that the domain or address is defined for this server.
 

Answer

Its in more settings in outlook 2003 , it says ‘my outgoing server requires authentication’ make sure there’s a tick in there. And that’ll solve it

Sent from my htc