[exim] problem with authentication (and esmtpa)

Hi,

I thought I had authentication configured properly, until now. I just read
through chapter 33 of the Exim 4.50 spec, where it explains about esmtpa.
So I did a grep for 'esmtpa' in my exim logs, and came up with none.

Now shouldn't that 'P=esmtpa' at least be the case when I send out a
message, if not always, since (I thought) I have authentication setup
properly?

But more (important) than that, I've just found out that if I disable the
option in my Outlook client - under "Outgoing Mail Server" - "My server
requires authentication", I can still access my mail account and even send
out mail. Shouldn't there be some authenticating there?

I've got Exim 4.54 and Courier 0.37 running on my Debian 3.0 machine, with
TLS/SSL and SpamAssassin, and before I expose something in my configuration
I shouldn't, maybe this will be enough for you to tell me what I need to
change or add:

[GLOBAL section]
hostlist auth_relay_hosts = *
acl_smtp_rcpt = acl_check_rcpt
acl_smtp_data = acl_check_data #for SpamAssassin
acl_not_smtp = acl_check_data #for SpamAssassin

auth_advertise_hosts = *
tls_advertise_hosts = *
tls_verify_certificates = /location/of/
tls_certificate = /location/of/file
tls_privatekey = /location/of/file

[AUTHENTICATION section]
plain:
  driver = plaintext
  public_name = PLAIN
  server_advertise_condition = ${if eq{$tls_cipher}{}{no}{yes}}
  server_condition = "\
    # $2 = Username | $3 = password
    ${if and {{!eq{$2}{}}{!eq{$3}{}} \
    {crypteq{$3}{${extract{1}{:} \
    {${lookup{$2}lsearch{/etc/exim/.passwd}{$value}{*:*}}}}}}}{1}{0}}"
  server_set_id = $2

login:
  driver = plaintext
  public_name = LOGIN
  server_prompts = "Username:: : Password::"
  server_advertise_condition = ${if eq{$tls_cipher}{}{no}{yes}}
  server_condition = "\
    # $1 = Username | $2 = password
    ${if and {{!eq{$1}{}}{!eq{$2}{}} \
    {crypteq{$2}{${extract{1}{:} \
    {${lookup{$1}lsearch{/etc/exim/.passwd}{$value}{*:*}}}}}}}{1}{0}}"
  server_set_id = $1

Then also I get, and you can see there's no 'AUTH' command:
# telnet localhost 25
Trying 127.0.0.1...
Connected to localhost.
Escape character is '^]'.
220 my.server.tld ESMTP Exim 4.54 Mon, 17 Oct 2005 09:33:06 +0200
ehlo my.server.tld
250-my.server.tld Hello root at localhost [127.0.0.1]
250-SIZE 52428800
250-PIPELINING
250-STARTTLS
250 HELP

Thanks in advance for any/all help!
Robert