[Dovecot] Dovecot - postfix SASL

[Matt]

Hi,

I am trying to replace pop-before-smtp ( yes it is crap )  with Dovecot SASL. 
I have everything configured according to:
http://www.postfix.org/SASL_README.html

But, does not allow me to SEND mail via POP3 using outlook express...

Below are my config files.

Postfix version 2.3.3
Dovecot version 1.0.rc7

dovecot.conf
------------
auth default {
  mechanisms = plain login

  passdb sql {
      args = /home/digipanel/secure/programs/dovecot/config/dovecot-mysql.conf
  }
  userdb sql {
      args = /home/digipanel/secure/programs/dovecot/config/dovecot-mysql.conf
  }
  socket listen {
        client {
          path = /home/digipanel/secure/programs/postfix/queue/private/auth
          mode = 0666
          user = postfix
          group = postfix
        }
  }
}

main.cf
-------
smtpd_recipient_restrictions =
   permit_mynetworks,
   permit_sasl_authenticated,
   reject_unauth_destination

smtpd_sasl_auth_enable = yes
broken_sasl_auth_clients = yes
smtpd_sasl_type = dovecot
smtpd_sasl_path = private/auth
smtpd_sasl_authenticated_header = yes

Now my postconf -a yields: dovecot

So, I know postfix has compiled in Dovecot support.

My mail logs say I am not allowd to relay off the mailserver.