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Warning: mail() [function.mail]: SMTP server response: 550 5.7.1 Unable to relay

Your mail server is blocking it, you do need to set up smtp authentication for it to send to non-local email addresses.

What's happening is:

Interspire Email Marketer connects to the mail server
- Your mail server says "is it local" (one of the domains I look after)
- If yes, accept the email
- If no, then deny the email

If it didn't deny the email (stop it being sent), then your mail server would be an 'open relay' and anyone (including spammers) would be able to send through it.

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