Qmail SMTP no longer has AUTH ==> open relay

[alanwbaker]

Recently my provider advised me that I have an open mail relay, so I ran some web-based open-relay checkers and it is indeed open (Akk!)

In PLESK System > Server > Mail > Preferences > Relaying...
the authorization button is selected and the SMTP box is checked.
Presumably psa-qmail-1.03-rh9.build75050824.12 has qmail-smtpd-auth compiled in and these selections activate it.

A) Is this correct?

To see what capabilities the mail server actually offers, I did...

telnet localhost 25
Trying 127.0.0.1...
Connected to localhost.
Escape character is '^]'.
220 abcd.org ESMTP
ehlo xyz.org
250-sjpc.org
250-STARTTLS
250-PIPELINING
250 8BITMIME

Uh-oh. No AUTH. When I set this up two years ago it also offered...
250-AUTH=LOGIN CRAM-MD5 PLAIN
250-AUTH LOGIN CRAM-MD5 PLAIN

I replied with an invalid auth string...
auth AGJha2VyMgBhc2RmYXNkZmFzZGY=
And qmail replied...
503 you are already authenticated

B) To prevent an open relay, shouldn't qmail offer AUTH? If so, how do I restore this capability?

advTHANKSance
Alan