When setting up Email notification in RMAD, clicking on "Test Settings" results in the error:
Failed to send the Test message. The server response was 530 5.7.1 Client was not authenticated
Exchange 2007 has locked down access to the SMTP server.
1. Open the 2007 Exchange Management Console 2. Expand Server Configuration 3. Click on Hub Transport 4. Open the properties of Default Servername 5. Click on the tab Permissions Groups 6. Tick Anonymous users 7. Click OK to save changes.
It should be noted that it is possible to allow individual users to do this rather than granting anonymous access.
You do this by granting The ms-Exch-SMTP-Submit permission to the sender via Powershell.
For more information on this, please see this article http://technet.microsoft.com/en-us/library/aa997170.aspx