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Troubleshooting: Notification Emails in Data Protection Manager (DPM) 2007 /2010

Data Protection Manager 2007 and DPM 2010 notification emails may not be delivered to the configured list of recipients although individual test mails are delivered successfully (Options -> SMTP Server -> Send test mail). When you try to send a test mail to a group in this scenario you get the following error:

The SMTP server reports that the From address is not valid. (ID: 527)
Check For appropriate permissions to send via SMTP to the specified server.

Troubleshooting Notification Emails in Data Protection Manager 2007 and Data Protection Manager 2010

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