SASL Authentication - lost connection after EHLO

Code:
# Postfix directory settings; These are critical for normal Postfix MTA functionallity

command_directory            = /usr/sbin

daemon_directory             = /usr/lib/postfix



# Some common configuration parameters

inet_interfaces              = all

#mynetworks_style            = host

mynetworks                   = myIP(allows me to relay without authentication), 127.0.0.0/8

myhostname                   = mail.myhostname

mydomain                     = mail.muhostname.local

myorigin                     = $myhostname



smtpd_banner                 = $myhostname ESMTP Mail Server

setgid_group                 = postdrop



# Receiving messages parameters

mydestination                = $myhostname, $mydomain

append_dot_mydomain          = no

append_at_myorigin           = yes

local_transport              = local

virtual_transport            = virtual

transport_maps               = hash:/etc/postfix/ispcp/transport

alias_maps                   = hash:/etc/aliases

alias_database               = hash:/etc/aliases



# Delivering local messages parameters

mail_spool_directory         = /var/mail



# Mailboxquota

# => 0 for unlimited

# => 104857600 for 100 MB

mailbox_size_limit           = 0

mailbox_command              = procmail -a "$EXTENSION"



# Message size limit

# => 0 for unlimited

# => 104857600 for 100 MB

message_size_limit           = 0



biff                         = no

recipient_delimiter          = +



local_destination_recipient_limit = 1

local_recipient_maps         = unix:passwd.byname $alias_database



# ispCP Autoresponder parameters

ispcp-arpl_destination_recipient_limit = 1



# Delivering virtual messages parameters

virtual_mailbox_base         = /var/mail/virtual

virtual_mailbox_limit        = 0



virtual_mailbox_domains      = hash:/etc/postfix/ispcp/domains

virtual_mailbox_maps         = hash:/etc/postfix/ispcp/mailboxes



virtual_alias_maps           = hash:/etc/postfix/ispcp/aliases



virtual_minimum_uid          = 1001

virtual_uid_maps             = static:1001

virtual_gid_maps             = static:8



# SASL paramters

smtpd_sasl_auth_enable       = yes

smtpd_sasl_security_options  = noanonymous

smtpd_sasl_local_domain      =

broken_sasl_auth_clients     = yes



smtpd_helo_required          = yes

#smtpd_sasl_authenticated_header = yes

smtpd_helo_restrictions      = permit_mynetworks,

                               permit_sasl_authenticated,

                               reject_invalid_helo_hostname,

                               reject_non_fqdn_helo_hostname



smtpd_sender_restrictions    = reject_non_fqdn_sender,

                               reject_unknown_sender_domain,

                               permit_mynetworks,

                               permit_sasl_authenticated



smtpd_recipient_restrictions = reject_non_fqdn_recipient,

                               reject_unknown_recipient_domain,

                               permit_mynetworks,

                               permit_sasl_authenticated,

                               reject_unauth_destination,

                               #check_client_access hash:/etc/postfix/rbl_override,

                               reject_unlisted_recipient,

                               check_client_access hash:/etc/postfix/policyd_whitelist,

                               check_policy_service inet:127.0.0.1:12525,

                               check_policy_service inet:127.0.0.1:10023,

                               permit



smtpd_data_restrictions      = reject_multi_recipient_bounce,

                               reject_unauth_pipelining



# TLS parameters; activate, if avaible/used

#smtpd_tls_security_level    = may

#smtpd_tls_loglevel          = 2

#smtpd_tls_cert_file         = /etc/postfix/cert.pem

#smtpd_tls_key_file          = /etc/postfix/privkey.pem

#smtpd_tls_auth_only         = no

#smtpd_tls_received_header   = yes



# AMaViS parameters; activate, if available/used

#content_filter               = amavis:[127.0.0.1]:10024



# Quota support; activate, if available/used

#virtual_create_maildirsize     = yes

#virtual_mailbox_extended       = yes

#virtual_mailbox_limit_maps     = mysql:/etc/postfix/mysql_virtual_mailbox_limit_maps.cf

#virtual_mailbox_limit_override = yes

#virtual_maildir_limit_message  = "The user you're trying to reach is over mailbox quota."

#virtual_overquota_bounce       = yes

#debug_peer_level = 2

#debug_peer_list = virginmedia.com