'Transaction failed. The server response was: 5.7.1 Relay access denied in asp.net'

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I am getting the following exception when ever i send mails to external mail-ids such as mailto:xyz@yahoo.com xyz@yahoo.com .

Transaction failed. The server response was: 5.7.1  Relay access denied in asp.net

i have googled , search in msdn forums but no use.
i have tried all the possibilities but all went in vain.

i added below statement also.
smtpclient.Credentials = </font><font color="#0000ff" size=2><font color="#0000ff" size=2>new</font></font><font size=2> System.Net.</font><font color="#008080" size=2><font color="#008080" size=2>NetworkCredential</font></font><font size=2>(</font><font color="#800000" size=2><font color="#800000" size=2>"username"</font></font><font size=2>, </font><font color="#800000" size=2><font color="#800000" size=2>"password"</font></font><font size=2>);
<font color="#008000" size=2><font color="#008000" size=2>tried smtpclient.UseDefaultCredentials = false; and also with true.
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in my windows live mail email client application
we have enabled My server requires authentication under Server> Outgoing Mail Server tab so that mails can be sent to external mail ids.
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do we have to set settings like this? </font>

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