yes you can use smtp authentication in postfix... you need to install cyrus-sasl and configure your smtpd.conf file in /usr/lib/sasl to use whatever auth methods you want... plus you need to add these lines in the /etc/postfix/main.cf file to be able to auth properly (and run /etc/init.d/postfix reload after you make these changes)
#allows for general auth
smtpd_sasl_auth_enable = yes
#no anon access
smtpd_sasl_security_options = noanonymous
#where you auth requests are allowed to go to
smtpd_sasl_local_domain = $myhostname
#lets bad email clients like outlook express to work w/ smtp auth
broken_sasl_auth_clients = yes
#and your security restrictions
smtpd_recipient_restrictions =
permit_sasl_authenticated,
permit_mynetworks,
check_relay_domains
as for your smtp not working for dyndns... i dont know.. you probably are running this through a firewall.. so ensure that your ports are open on the firewall / or are properly forwarded.
and dont be too discouraged... smtp auth is a pain in the butt sometimes
