cgoodlein,
Have you tried switching the SMTP port to 587?
If it is software as your technician suspects, then it could be a corrupted email profile.
below is a direct link to Outlook's official KB site. i recommend reading through the command switches for Outlook 07 and run the /cleanprofile switch.
http://office.microsoft.com/en-us/ou...589.aspx?CTT=1
Hope this helps.