I had to revert to an earlier version of the server when I realized the latest one does not properly auth perl script requests such as this:

use Net::SMTP;
$smtp = Net::SMTP->new(Host => 'mail2.domain.com',Timeout => 30,Debug   => 1);
$smtp->auth("contact\@domain.com","password");
$smtp->mail("contact\@domain.com");
$smtp->to("somebody\@yahoo.com");
$smtp->data();
$smtp->datasend("From: contact\@domain.com\n");
$smtp->datasend("To: somebody\@yahoo.com\n");
$smtp->datasend("Subject: Jeffy\n");
$smtp->datasend("Content-Type: text/html\n");
$smtp->datasend("\n");
$smtp->datasend("Test e-mail\n");
$smtp->dataend();
$smtp->quit;

I was getting auth errors until reverting to the previous version.