[exim] Debian Exim4 setup as transfer agent to smarthost

To start, I am using Debian Linux (Squeeze) and have a Verizon FIOS
fiber optic connection to the ISP. Verizon supplies a smarthost at
outgoing.verizon.net.

I am trying to setup exim4 to transfer automated messages from an
experimental website to outgoing.verizon.net. The short of it is that I
can't get exim to finish connecting to outgoing.verizon.net. I am using
swak to test the conniction with the command line:

     swak --auth --to xxxx@??? --server outgoing.verizon.net

where xxxx@??? is one of my email accounts with Verizon.

and in return get:

  === Trying outgoing.verizon.net:25...       (Note: Verizon switching 
to port 587 but port 25 still works)
=== Connected to outgoing.verizon.net.
<-  220 vms173003pub.verizon.net -- Server ESMTP (Sun Java(tm) System 
Messaging Server 7u2-7.02 32bit (built Apr 16 2009))
  -> EHLO cruncher.home
<-  250-vms173003pub.verizon.net
<-  250-8BITMIME
<-  250-PIPELINING
<-  250-CHUNKING
<-  250-DSN
<-  250-ENHANCEDSTATUSCODES
<-  250-HELP
<-  250-XLOOP C0EC2FA12D551DA391F91180A6CA94A1
<-  250-AUTH DIGEST-MD5 PLAIN LOGIN CRAM-MD5
<-  250-AUTH=LOGIN PLAIN
<-  250-ETRN
<-  250-NO-SOLICITING
<-  250 SIZE 20971520
  -> AUTH CRAM-MD5
<-  334 PDEwMDc1NTU1NDIuMTA0NDQ1OTNAdm1zMTczMDAzPg==
  -> Z2FyeXJvYWNoIDMyNDI5MjJiMTdmOThiNjgwMDg1YzY5ZTkzMDE3MGEz
<-  235 2.7.0 CRAM-MD5 authentication successful.
  -> MAIL FROM:<root@???>
<** 550 5.1.8 invalid/host-not-in-DNS return address not allowed
  -> QUIT
<-  221 2.3.0 Bye received. Goodbye.
=== Connection closed with remote host.

Using exim to write a message gives the same result except the return is
dumped into the log file with not as clear failure information.

My sending computer is named cruncher and is on domain "domain.com". It
is part of a 5 computer , mixed pedegree, network that connects through
an Actiontec M14244WR DSL router. Verizon uses plain text authentication
because I have a direct fiber optic cable from my home to the
verification system;Theory being that there is no way to sniff the
signal in between ( an answer to a lot of complaints about this.) My
trouble starts when they do some form of reverse DNS lookup on, I
believe on EHLO, to make sure that I am who I say I am (antispammer). I
don't know what to send for the DNS lookup or how to send it.

I have read everything I could find on the internet and on Debian 
instructions. Most things are out of date and call for files that don't 
exist. Other things just don't work. I'm so frustrated I could scream. 
Much of the problem is caused by terminology I do not understand. I've 
been using Linux for some years but have never worked this area before. 
*I apparently need instructions that an idiot could follow.
*
I have this information to work with:
     Email Accounts -    XXXXX@???  my personal email
                                     YYYYY@???  my wifes email
                                     gary719_list1@??? - this 
account

     Return from: host outgoing.verizon.net   is  206.46.232.12

     My password and login name are in the file passwd.client in the form:
         outgoing.verizon.net:login name:password
     This part seems to work ok

I wish to send automated (website) email only to the smarthost at
outgoing.verizon.net
I do not wish to receive any email through this MTA
Connecting the web site to exim is another problem to be solved later.

Any help will reeeeeeeeally appreciated.

Gary R.