Any report that uses Pro features, users that view it must also have a Pro license. RLS is a Pro feature.
Here is a blog post on a different approach to RLS that may or may not help:
As for external users, one way that I have gotten around this is to invite external users to a SharePoint site. In this way, they create a "stub" account in your Active Directory that is tied to their external Microsoft "Live" account. You can then add that "stub" account as one of your members in your RLS group.