Index: C:/Lab/VOID/projects/james-merge/src/java/org/apache/james/smtpserver/SMTPHandler.java
===================================================================
--- C:/Lab/VOID/projects/james-merge/src/java/org/apache/james/smtpserver/SMTPHandler.java	(revision 168008)
+++ C:/Lab/VOID/projects/james-merge/src/java/org/apache/james/smtpserver/SMTPHandler.java	(working copy)
@@ -1157,7 +1157,7 @@
                 }
                 return;
             }
-            if (authRequired) {
+            if (authRequired && !relayingAllowed) {
                 // Make sure the mail is being sent locally if not
                 // authenticated else reject.
                 if (getUser() == null) {