Sorry guys..was in a bit of a hurry when I posted..should have explained better..apologies for that!
Outgoing email bounces back with the above error. Now, I have spent 2 whole days at this site and I can say that only email sent to certain addresses gets bounced.
As mentioned before, I was suspecting some sort of DNS issue, and I think it's still the problem. Researching on the 'net found that this error could be caused by a reverse PTR record either non-existent or pointing to the wrong mail server.
I did some "digging" and found that the reverse PTR point back to the ISP instead of pointing to the "mail.domain.com". Contacted the ISp and they will do the changes.
I just wish that these errors were a bit less cryptic, and ISPs a bit more forthcoming with DNS issues and pitfalls.
So, for future reference, and so that nobody falls into the same trap, check your reverse DNS PTR settings.
Apologies again for sending you guys on a wild goose chase, but I was desperate as I had this client on my back unable to send emails.
Thanks again to all for your help and best regards
Bosco