KACE Product Support

I'm trying to get KACE outgoing mail working so we can have reports emailed to us every Friday. We do not currently use the Service Desk, so I don't care about incoming email. I've setup our Exchange 2013 server with a receive connector that points to the KACE 1000 IP addresses, and have security set for Anonymous as well as Exchange users. When I run the email test from Settings > Support> Utilities I get the following:

LOG: MAIN
  <= emailalerts@nts005.office.xxx.com U=www P=local S=495
delivering 1YRMl6-000H3d-Dg
LOG: retry_defer MAIN
  == bharrison@xxx.com R=smart_route T=transport_587 defer (-53): retry time not reached for any host

Every so often, I will get a different error message that says authentication failed, which seems odd since it is setup to handle Anonymous Users. I have also created a Mailbox for the EmailAlerts user, as well as an AD account. Both of those function correctly if I login to a workstation as a user. I'm just having a very difficult time troubleshooting this because I keep getting the above error message which, frankly, is completely worthless.

My email config looks like this:

Should the login be the fully qualified name of the email account? Or would the username suffice? Or would the email address itself be enough? Their is such little documentation on this I find it so hard to fix it, especially since no amount of changes seems to alter the error message I am getting above. I did notice that if I reboot the KACE, it increases my chances of getting an actual error message.