Do the following in Outlook:
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Go to Tools > E-mail Accounts > View or change existing e-mail accounts > *Select the account you wish to edit* > Change > More Settings > Outgoing Server > *Check the box which says "My outgoing server requires authentication", and ask it to use the same settings as the incoming mail server*
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This should resolve your problem in no time. Alternatively if this doesn't work, you can add me on msn (see my signature) and I can try and give you quick free unoficial support.