Email Notification Error when hitting Test Mail button

Question

Setting up our first XG unit (what a nightmare) compared to the SG units and ran into a pretty big problem. Email notification will not work. Put in the same Exchange Server we use for all of our SG units on port 587 with the same username/password and the same security. No issues at all on our SG units, but on this XG we are getting this error: 
 
 "Authentication method mismatch. Please confirm the authentication method support for LOGIN or PLAIN on the mail server" 
 
 We have verified all our information is correct and we can use telnet to connect with username/password provided without issue so it seems to be an issue with the actually XG software. Please advice, we can NOT put this device in production without proper Notification setup. Thank you

matt_ss · Accepted Answer

Still didn't resolve the issue. I was able to setup a XRelay for our hosted exchange server that as long as we are sending internal doesn't require authentication. Was able to get the sophos to send out email as long as authentication wasn't enable. Using telnet the issue seems to be with the sophos software not being able to send authentication correctly especially NTLM. How do all these "bugs" make into a production version of the software, you would think these things would be worked out in BETA. I guess we will wait until Sophos has this Authentication issue resolved before we can start using port 587 with authentication. What is an ETA on this resolution?????