Ohhhh, a list!

1) we have a firewall with a policy that only allows inbound and outbound SMTP to the SME server.
2) I have SME running in server mode.
3) I have two ther server that are used for developemnet and an application has been created that require an smtp server to be used. the application will generate email and send them to the email address of the requestor.
4) the application will send the emails to the SMTP server. SMTP from these servers are not allowed through the firewall.
5) The aplication servers are on different networks from the SME server.
Ok, you don't have an email server on the local side that the app resides on, correct? The SME server sits on the remote side and only it is allowed to send and recieve smtp requests. Your firewall setup is the same on both sides but only one side has an email server, is this right?
If that is right, then why not setup a box that is allowed to send smtp through the firewall to the SME server for delivery at the remote side?
If the SME server is on the same side as the app that is trying to send then my first post holds true.
Hope that helps and hope I understood you,
Jon