OK, this means turn off auth , Curt got back and it worked.
AquaController> cons
AquaController> 1 maild
AquaController> mail
AquaController> SMTP: server = e008e1d1
SMTP: fdopen OK
SMTP: mailhost --> 220 charter.net ESMTP server ready Fri, 21 Nov 2008 13:15:16
-0500
SMTP: mailhost <--
SMTP: EHLO neptunesys.com
SMTP: mailhost --> 250-charter.net
SMTP: mailhost --> 250-HELP
SMTP: mailhost --> 250-VRFY
SMTP: mailhost --> 250-XREMOTEQUEUE
SMTP: mailhost --> 250-ETRN
SMTP: mailhost --> 250-PIPELINING
SMTP: mailhost --> 250-DSN
SMTP: mailhost --> 250-8BITMIME
SMTP: mailhost --> 250 SIZE 15728640
SMTP: mailhost <--
SMTP: auth login
SMTP: mailhost --> 502 Command is locally disabled
SMTP: unexp reply: 502 Command is locally disabled