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The problem is when you telnet and open ip 110 you do not get the +OK

You will see only this line:

220 EXCH1.somedomain.com Microsoft ESMTP MAIL Service ready at Fri, 1 Jan 2013 13:44:03 -0500

 

However you should get this:

220 EXCH1.somedomain.com Microsoft ESMTP MAIL Service ready at Fri, 1 Jan 2013 13:44:03 -0500

+OK

 

What I found in this case is that there where 2 receive connectors listening on the same port in exchange 2010