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Unable to Send mail using Database Mail feature SQL Server 2008 R2

Hello,

Fellow DBA's...I have been trying to configure Database Mail on SQL Server 2008 R2 but I am betting below error.
I am able to send Mail by connecting to my Mail server using Telnet but no luck.

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Date1/6/2013 4:03:20 PM
LogDatabase Mail (Database Mail Log)

Log ID154
Process ID7756
Mail Item ID45
Last Modified1/6/2013 4:03:20 PM
Last Modified Bysa

Message
The mail could not be sent to the recipients because of the mail server failure. (Sending Mail using Account 14 (2013-01-06T16:03:20). Exception Message: Cannot send mails to mail server. (Command parameter not implemented. The server response was: 5.5.2 <Server Name>: Helo command rejected: need fully-qualified hostname).
)

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I have tried every possible thing. referred to different forums and Changed the setting of  SMTP Virtual Server in IIS  but still no luck

I would appreciate if anyone out there has solution to this issue.

Thanks!
RB


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