I had the same issue - outgoing email would send fine to seemingly everywhere but GoDaddy. I had the same 554 bounce message.
I called and after some leading of the first-line tech in the right direction, she unblocked my linode IP. Everything works great now.
Apparently, godaddy does a reverse-DNS on your IP. Mine resolves to a linode member address, of course. If they don't see 'MX' or 'mail' or the like in the address, they apparently assume it's spam and block it.
From
http://unblock.secureserver.net (GoDaddy server):
Quote:
Verify that your rDNS contains a name that includes "mail", "SMTP", "relay", or "MX". For example: mail.example.com, smtp.example.com, or mx1.example.com.
Is there anyway to change a Linode IP's CNAME entry?? If not, the SMTP servers set up on Linode VPS's should be used with caution--who knows if other mail servers have similar policies and will block incoming mail accordingly.