The issue has been resolved.

  1. In the Exchange MMC , under server configuration select Hub transport
  2. in the action menu on the right hand side select " New Receive Connector"
  3. Give it a name.  any name will do , we call it "Application relay"
  4. In the next screen  Local Network settings
    4.a provide the fully qualified ( internal) dns name of the mail server
    4b. Edit the the receive connector binding & change the port to 26
  5. In the next screen Remote network settings
    5a. remove the default bindings of
    5b. Add the IP address of the server running Backup exec, in our case
    This address is often the same as that of the Exchange server especially if you are running SBS
  6. On the next screen New Connector you will be displayed a summary of your configuration which will look somewhat like this , click NEW to build it.
    Name: Application relay
    Type: Custom
    IP Address(es):
    (All available IPv4 addresses): Port 26
    Remote IP range(s):
  7. IF all is well  On the next screen Completion you will be informed  so . click Finish
  8. In the Exchange MMC double click the connector you just created &
    8a. select the Permission groups tab & check Exchange Server
    ( Note: if backupexec is not on the same server as the exchange server you may have to play around with this)
    8b. select the Authentication tab & additionally check off  Externally Secured
  9. Go to Symantec Backup Exec & select E-mail alerts and Pager notifications from the drop down menu
  10. Enable SMTP Configuration & fill up the information for your mail server , remember to specify port 26, Sender name & Sender email address. There is no need to Enable SMTP Authentication


That's it you are done.

 If you still cannot send email alerts , you will want to set the logging for the recive connector you just created to Verbose

You will find the log in the following folder.

Receive Connector logs are located in:
Exchange 2010: C:\Program Files\Exchange Server\V14\TransportRoles\Logs\ProtocolLog\SmtpReceive
Exchange 2007: C:\Program Files\Exchange Server\TransportRoles\Logs\ProtocolLog\SmtpReceive

Send Connector logs are located in:
Exchange 2010: C:\Program Files\Exchange Server\V14\TransportRoles\Logs\ProtocolLog\SmtpSend
Exchange 2007: C:\Program Files\Exchange Server\TransportRoles\Logs\ProtocolLog\SmtpSend

 images coming shortly