SMTP Protocol Returned a Transient Error

I have created an account for SMTP to send mail to remote server.

I am loggin to my notes client using my test id (which is not related to the remote server id).

I am able to connect to the remote server using IMAP protocol for receving mails.

But when I am trying to send mail(s) it just lies in my smtp.box and while replicating the datbase with the remote server, it throws “SMTP Protocol Returned a Transient Error” error message. This happens if I do not specify username and password in account document of SMTP. But if i specify the username and password , replicator throws error “SMTP Protocol Returned a Permanent Error”.

I have not started my test domino server and my mails goes directly through internet [i have indicated this in my location document].

Can anyone guide me where I am going wrong? Any quick help in this matter is much appreciated.