Thank you for the reply and the link. As I stated though, I've been through all those settings with GoDaddy. 3 different experts. Probably 2 hours of trying all kinds of different Email Account Settings. The problem is with Outlook.
I've just posted a screen shot of my outbox here (using Word Pad):
Outlook 2007 Outbox screen shot.rtf
The message 're:test3' will not send. 'test 3' will send normally when i click Send/Receive. Notice the icons to the left of the message are different. They arrive in the outbox that way, before Outlook even tries to send the messages.