That error is coming back from your mail server and it is saying that your user does not have permission to send on behalf of another email address.
You would normally see this if your credential was set using one account and the from address in the node is something else and your mail server has not been configured to allow the authenticating account to send as the from address provided.
To work around this you would need to either configure your mail server to allow this or change the From address you are using.