Receive connector won't work for TLS-enabled domains

Hi everybody,

One of my clients tasked me with setting up a send/receive TLS partnership with another domain.  We'll just call my client CUSTOMER.COM and the other domain TLSISFUN.COM.

On customer.com I followed this article (http://technet.microsoft.com/en-us/library/bb123543.aspx) to set the transportconfig, send and receive connectors appropriately.  

I need to validate this, but I believe tlsisfun.com is receiving emails via TLS from my customer.  However, when theirtlsisfun.com domain sends email to my customer.com domain, my clients never get the emails at all.

The sender from tlsisfun.com gets a bounceback - something to this effect:

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5.1.0 - Unknown address error 530-'5.7.1 Not authenticated - on relay of: MAIL FROM:<prvs=xxxxxxx=user@tlsisfun.com>' (delivery attempts: 0)

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I cranked up the protocol logging.  I'm not sure exactly what you'd want to see in it, but one lead I'm following that might be the problem is this chunk of the SMTP communication:

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I'd love some guidance figuring out why these emails never get to their intended recipients.  I must have something configured wrong.

Thanks,

Brian