[Exim] having problem forcing all senders to auth

The goal is to require auth for any email to go out via the smtp server.

exim is running on smtp.hanaden.com with the below settings in the
config file.

external senders are being required to auth:
    good
internal senders <via mozilla> are being required to auth:
    good
internal senders via javamail are relayed
    bad

Any thoughts on how this should be settup? I tried omitting all domains
on local_domains and this results in frozen msg because "the lowest
numbered MX points to localhost"

#domainlist local_domains = @
domainlist local_domains = hanaden.com
#domainlist local_domains =
domainlist relay_to_domains =
hostlist relay_from_hosts = 127.0.0.1