It's very difficult to tell without more information.
When I am troubleshooting email problems, I like to test each link of the process individually. That way I can eventually arrive - at least - where the problem is located. That way I can apply my attention to the proper component instead of having to consider the entire chain at once.
First of all, let's have a look at your domain name and how it stacks up at www.dnsstuff.com:
http://www.dnsstuff.com/tools/dnsreport?domain=wattzup.com&format=raw&loadresults=true&token=15211bcd8a853d343097ca1b2f18e016
(link valid for 7 days)
As you can see, there may be a problem with remote mail servers connecting to your email server.
Check your firewall settings to ensure that there is a rule allowing traffic (only) from the public IP of your firewall to the internal IP address of your mail server on port 25. (For additional security you can also configure your mail server to use an alternate port and shift the port from 25 on the public side of your router to the alternate port on your mail server's internal IP address.)
THEN - the really bad part is - if your sender's mail server is configured properly, they will never ever even attempt to connect to your email server because your public IP address does not have a reverse lookup entry at your IP address provider. (ISP)
This is normally used when accepting connections from your mail server . . . but a lot of mail servers are beginning to use reverse DNS lookups for connections to your mail server as well.
If I were you, I would concentrate on the connection on port 25 from your router's public address to your mail server's internal IP.
A question I have is . . . where are you telnetting from when testing? Remember that while troubleshooting anything network-wise, perspective makes all the difference in the world. Telnet from another device on your internal network is very different than telnetting from somewhere outside the LAN and of course both of those are different than telnet from the same server to port 25 on the same server.
Which reminds me - if you're testing by telnetting from the same server, you may need to add an allowed host to your server - which would be the internal IP address of your router.
Whew! So many variables . . .
Let us know how it goes -
I hope this helps -
/David C.