Exchange Server 2007 OWA users can receive email but can't send

Hi,
I have an Exchange server 2007 in an SBS 2008 environment with POP3 connector configured and working fine , smtp send mail connector configured. 
Now users can connect to OWA, receive email but cant not send.
smtp connector works fine from Outlook client. Tried to track the emails from exchange server management console and I get the
SEND DELIVER SUBMIT TRANSFER.
The emails go to the sent items folder, but it never reach the recipients.
Have been troubleshooting for a while without succes. Any help will be most appreciated.
Regards
Faisal

POP3 is a single mailbox client mail retrieval protocol, not a mail transport protocol. 
Any attempt to use it as a mail transport protocol is a great big kludge. 
Exchange is designed to connect to the Internet using SMTP.
No version of Exchange has a POP3 connector.
I recommend that you post this in the SBS Forum:  http://social.technet.microsoft.com/Forums/en/smallbusinessserver/threads
Ed Crowley MVP "There are seldom good technological solutions to behavioral problems."

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