Cannot Send mail from client

I cannot send email from outlook client.

maillog:

Oct 14 11:17:53 ns1 postfix/smtpd[9425]: connect from unknown[75.151.48.118]
Oct 14 11:17:53 ns1 postfix/smtpd[9425]: warning: SASL authentication failure: realm changed: authentication aborted
Oct 14 11:17:53 ns1 postfix/smtpd[9425]: warning: unknown[75.151.48.118]: SASL DIGEST-MD5 authentication failed: authentication failure
Oct 14 11:17:53 ns1 postfix/smtpd[9266]: disconnect from visitorly.technician.volia.net[77.122.110.161]
Oct 14 11:17:53 ns1 postfix/smtpd[9425]: warning: SASL authentication failure: cannot connect to saslauthd server: No such file or directory
Oct 14 11:17:53 ns1 postfix/smtpd[9425]: warning: unknown[75.151.48.118]: SASL LOGIN authentication failed: generic failure
Oct 14 11:17:53 ns1 postfix/smtpd[9425]: lost connection after AUTH from unknown[75.151.48.118]
Oct 14 11:17:53 ns1 postfix/smtpd[9425]: disconnect from unknown[75.151.48.118]

I have looked on the ticket system for a solution that i can understand but have had no luck.

I just moved this server from RHEL 4 using sendmail to this CentOS 5.2 using psotfix. All my clients are going nuts. I am pretty sure i tested this but may have only sent email from usermin.

main.cf
inet_interfaces = all
mydestination = $myhostname, localhost.$mydomain, localhost, ns1.kycities.net
alias_maps = hash:/etc/aliases
alias_database = hash:/etc/aliases
readme_directory = /usr/share/doc/postfix-2.3.3/README_FILES
virtual_alias_maps = hash:/etc/postfix/virtual
sender_bcc_maps = hash:/etc/postfix/bcc
mailbox_command = /usr/bin/procmail-wrapper -o -a $DOMAIN -d $LOGNAME
home_mailbox = Maildir/
smtpd_sasl_auth_enable = yes
broken_sasl_auth_clients = yes
smtpd_recipient_restrictions = permit_mynetworks permit_sasl_authenticated reject_unauth_destination

Status: 
Closed (fixed)