diff -U4 -r exim-4.63/src/smtp_in.c exim-4.63+fix-localhost-helo/src/smtp_in.c
--- exim-4.63/src/smtp_in.c	2006-07-31 15:19:48.000000000 +0100
+++ exim-4.63+fix-localhost-helo/src/smtp_in.c	2006-08-26 14:06:34.000000000 +0100
@@ -2552,8 +2552,15 @@
         break;
         }
       }
 
+    if (!Ustrcmp(sender_helo_name, US"[127.0.0.1]"))
+      {
+      DEBUG(D_any) debug_printf("overwriting bogus helo [127.0.0.1] with [%s]\n", sender_host_address);
+      sender_helo_name = string_copy_malloc(string_sprintf("[%s]", sender_host_address));
+      host_build_sender_fullhost();  /* Rebuild */
+      }
+
     /* The EHLO/HELO command is acceptable. Reset the protocol and the state,
     abandoning any previous message. */
 
     received_protocol = (esmtp?
Only in exim-4.63+fix-localhost-helo/src: smtp_in.c.orig