Corrupt Windows Componenet, or Outlook Problem?

Greetings:

I'm running XP SP2 on a desktop and laptop on an ad-hoc (peer to peer)
network. Neither computer will send email using Outlook 2003 or Outlook
Express, but can receive email fine. YES, all the config settings are
correct. Neither computer will connect to the SMTP using the Telnet command,
nor will they "bounce" email using MailWasher. NO, my ISP is NOT blocking
port 25.

I've scanned both for viruses and adware and found nothing. I've switched
off all antivirus and firewalls and still can't send email.

I've configured a buddy's laptop to connect through same ISP and use Outlook
Express and it WILL send email AND connect to the SMTP using Telnet.

What gives? I'm suspecting a damaged Windows component, but I've tried
"c:sfc /now" on both computers and it didn't find anything. I've run out of
tricks. Can anyone offer some assistance? I've included a section of a log
file below.

Thanks,

Brian


2005.03.10 18:49:22 Logging Started (level is LTF_TRACE)
2005.03.10 18:49:22 USER 1: Synch operation started (flags = 00000001)
2005.03.10 18:49:22 USER 1: UploadItems: 0 messages to send
2005.03.10 18:49:22 USER 1: Synch operation completed
2005.03.10 18:49:22 USER 1: Synch operation started (flags = 00000030)
2005.03.10 18:49:22 USER 1: DoPOPDownload(flags = 00000030, max msg =
ffffffff): full items
2005.03.10 18:49:22 POP3 (website.com): Begin execution
2005.03.10 18:49:22 USER 2: Synch operation started (flags = 00000001)
2005.03.10 18:49:22 USER 2: UploadItems: 0 messages to send
2005.03.10 18:49:22 USER 2: Synch operation completed
2005.03.10 18:49:22 USER 2: Synch operation started (flags = 00000030)
2005.03.10 18:49:22 POP3 (website.com): ========= Initial blob =========
2005.03.10 18:49:22 POP3 (website.com): ===================================
2005.03.10 18:49:22 USER 2: DoPOPDownload(flags = 00000030, max msg =
ffffffff): full items
2005.03.10 18:49:22 POP3 (website.com): Begin execution
2005.03.10 18:49:23 POP3 (website.com): Port: 110, Secu no, SPA: no
2005.03.10 18:49:23 POP3 (website.com): Finding host
2005.03.10 18:49:23 POP3 (website.com): Connecting to host
2005.03.10 18:49:23 POP3 (website.com): Connected to host
2005.03.10 18:49:23 POP3 (website.com): rx +OK X1 NT-POP3 Server
website.com (IMail 8.05 6397-1)
2005.03.10 18:49:23 POP3 (website.com): Authorizing to server
2005.03.10 18:49:23 POP3 (website.com): [tx] USER USER 1
2005.03.10 18:49:23 POP3 (website.com): rx +OK send your password
2005.03.10 18:49:23 POP3 (website.com): [tx] PASS *****
2005.03.10 18:49:24 POP3 (website.com): rx +OK maildrop locked and ready
2005.03.10 18:49:24 POP3 (website.com): Authorized to host
2005.03.10 18:49:24 POP3 (website.com): Connected to host
2005.03.10 18:49:24 POP3 (website.com): [tx] STAT
2005.03.10 18:49:24 POP3 (website.com): rx +OK 0 0
2005.03.10 18:49:24 POP3 (website.com): ==== Comparing server and local
blobs ====
2005.03.10 18:49:24 POP3 (website.com):
==========================================
2005.03.10 18:49:24 POP3 (website.com): Do deletions: LoS: no
2005.03.10 18:49:24 POP3 (website.com): Disconnecting from host
2005.03.10 18:49:24 POP3 (website.com): [tx] QUIT
2005.03.10 18:49:24 POP3 (website.com): rx +OK POP3 Server saying Good-Bye
2005.03.10 18:49:24 POP3 (website.com): Disconnected from host
2005.03.10 18:49:24 POP3 (website.com): ========= No blob changes =========
2005.03.10 18:49:24 POP3 (website.com): ===================================
2005.03.10 18:49:24 POP3 (website.com): End execution
2005.03.10 18:49:24 USER 1: ReportStatus: RSF_COMPLETED, hr = 0x00000000
2005.03.10 18:49:24 USER 1: Synch operation completed
2005.03.10 18:49:24 POP3 (website.com): ========= Initial blob =========
2005.03.10 18:49:24 POP3 (website.com): ===================================
2005.03.10 18:49:24 POP3 (website.com): Port: 110, Secu no, SPA: no
2005.03.10 18:49:24 POP3 (website.com): Finding host
2005.03.10 18:49:24 POP3 (website.com): Connected to host
2005.03.10 18:49:24 POP3 (website.com): rx +OK X1 NT-POP3 Server
website.com (IMail 8.05 6399-1)
2005.03.10 18:49:24 POP3 (website.com): Authorizing to server
2005.03.10 18:49:24 POP3 (website.com): [tx] USER USER 2
2005.03.10 18:49:25 POP3 (website.com): rx +OK send your password
2005.03.10 18:49:25 POP3 (website.com): [tx] PASS *****
2005.03.10 18:49:25 POP3 (website.com): rx +OK maildrop locked and ready
2005.03.10 18:49:25 POP3 (website.com): Authorized to host
2005.03.10 18:49:25 POP3 (website.com): Connected to host
2005.03.10 18:49:25 POP3 (website.com): [tx] STAT
2005.03.10 18:49:25 POP3 (website.com): rx +OK 1 395
2005.03.10 18:49:25 POP3 (website.com): [tx] UIDL
2005.03.10 18:49:25 POP3 (website.com): rx +OK 1 messages (395 octets)
2005.03.10 18:49:26 POP3 (website.com): rx 1 409091183
2005.03.10 18:49:26 POP3 (website.com): rx .
2005.03.10 18:49:26 POP3 (website.com): [tx] LIST
2005.03.10 18:49:26 POP3 (website.com): rx +OK 1 messages (395 octets)
2005.03.10 18:49:26 POP3 (website.com): rx 1 395
2005.03.10 18:49:26 POP3 (website.com): rx .
2005.03.10 18:49:26 POP3 (website.com): ==== Comparing server and local
blobs ====
2005.03.10 18:49:26 POP3 (website.com): 409091183 : new
2005.03.10 18:49:26 POP3 (website.com):
==========================================
2005.03.10 18:49:26 POP3 (website.com): [tx] RETR 1
2005.03.10 18:49:27 POP3 (website.com): rx +OK 395 octets
2005.03.10 18:49:31 POP3 (website.com): Do deletions: LoS: no
2005.03.10 18:49:31 POP3 (website.com): [tx] DELE 1
2005.03.10 18:49:31 POP3 (website.com): rx +OK msg deleted
2005.03.10 18:49:31 POP3 (website.com): Disconnecting from host
2005.03.10 18:49:31 POP3 (website.com): [tx] QUIT
2005.03.10 18:49:31 POP3 (website.com): rx +OK POP3 Server saying Good-Bye
2005.03.10 18:49:31 POP3 (website.com): Disconnected from host
2005.03.10 18:49:31 POP3 (website.com): ========= Updates to blob =========
2005.03.10 18:49:31 POP3 (website.com): &B409091183
2005.03.10 18:49:31 POP3 (website.com): ========= Final blob =========
2005.03.10 18:49:31 POP3 (website.com): &B409091183
2005.03.10 18:49:31 POP3 (website.com): ===================================
2005.03.10 18:49:31 POP3 (website.com): End execution
2005.03.10 18:49:31 USER 2: ReportStatus: RSF_COMPLETED, hr = 0x00000000
2005.03.10 18:49:31 USER 2: Synch operation completed

2005.03.10 18:50:39 USER 1: Synch operation started (flags = 00000001)
2005.03.10 18:50:39 USER 1: UploadItems: 1 messages to send
2005.03.10 18:50:39 SMTP (website.com): Begin execution
2005.03.10 18:50:39 SMTP (website.com): Port: 25, Secu no, SPA: no
2005.03.10 18:50:39 SMTP (website.com): Finding host
2005.03.10 18:51:00 SMTP (website.com): Disconnected from host
2005.03.10 18:51:00 SMTP (website.com): End execution
2005.03.10 18:51:00 USER 1: ReportStatus: RSF_COMPLETED, hr = 0x80042109
2005.03.10 18:51:00 USER 1: Synch operation completed
2005.03.10 18:51:19 Resource manager terminated


2005.03.10 18:56:49 Logging Started (level is LTF_TRACE)
2005.03.10 18:56:49 USER 1: Synch operation started (flags = 00000001)
2005.03.10 18:56:49 USER 1: UploadItems: 0 messages to send
2005.03.10 18:56:49 USER 1: Synch operation completed
2005.03.10 18:56:49 USER 1: Synch operation started (flags = 00000030)
2005.03.10 18:56:49 USER 1: DoPOPDownload(flags = 00000030, max msg =
ffffffff): full items
2005.03.10 18:56:49 POP3 (website.com): Begin execution
2005.03.10 18:56:49 USER 2: Synch operation started (flags = 00000001)
2005.03.10 18:56:49 POP3 (website.com): ========= Initial blob =========
2005.03.10 18:56:49 POP3 (website.com): ===================================
2005.03.10 18:56:49 USER 2: UploadItems: 0 messages to send
2005.03.10 18:56:49 USER 2: Synch operation completed
2005.03.10 18:56:49 POP3 (website.com): Port: 110, Secu no, SPA: no
2005.03.10 18:56:49 POP3 (website.com): Finding host
2005.03.10 18:56:49 USER 2: Synch operation started (flags = 00000030)
2005.03.10 18:56:49 POP3 (website.com): Connecting to host
2005.03.10 18:56:49 USER 2: DoPOPDownload(flags = 00000030, max msg =
ffffffff): full items
2005.03.10 18:56:49 POP3 (website.com): Begin execution
2005.03.10 18:56:49 POP3 (website.com): Connected to host
2005.03.10 18:56:50 POP3 (website.com): rx +OK X1 NT-POP3 Server
website.com (IMail 8.05 6451-3)
2005.03.10 18:56:50 POP3 (website.com): Authorizing to server
2005.03.10 18:56:50 POP3 (website.com): [tx] USER USER 1
2005.03.10 18:56:50 POP3 (website.com): rx +OK send your password
2005.03.10 18:56:50 POP3 (website.com): [tx] PASS *****
2005.03.10 18:56:50 POP3 (website.com): rx +OK maildrop locked and ready
2005.03.10 18:56:50 POP3 (website.com): Authorized to host
2005.03.10 18:56:50 POP3 (website.com): Connected to host
2005.03.10 18:56:50 POP3 (website.com): [tx] STAT
2005.03.10 18:56:50 POP3 (website.com): rx +OK 0 0
2005.03.10 18:56:50 POP3 (website.com): ==== Comparing server and local
blobs ====
2005.03.10 18:56:50 POP3 (website.com):
==========================================
2005.03.10 18:56:51 POP3 (website.com): Do deletions: LoS: no
2005.03.10 18:56:51 POP3 (website.com): Disconnecting from host
2005.03.10 18:56:51 POP3 (website.com): [tx] QUIT
2005.03.10 18:56:51 POP3 (website.com): rx +OK POP3 Server saying Good-Bye
2005.03.10 18:56:51 POP3 (website.com): Disconnected from host
2005.03.10 18:56:51 POP3 (website.com): ========= No blob changes =========
2005.03.10 18:56:51 POP3 (website.com): ===================================
2005.03.10 18:56:51 POP3 (website.com): End execution
2005.03.10 18:56:51 USER 1: ReportStatus: RSF_COMPLETED, hr = 0x00000000
2005.03.10 18:56:51 USER 1: Synch operation completed
2005.03.10 18:56:51 POP3 (website.com): ========= Initial blob =========
2005.03.10 18:56:51 POP3 (website.com): &B409091183
2005.03.10 18:56:51 POP3 (website.com): ===================================
2005.03.10 18:56:51 POP3 (website.com): Port: 110, Secu no, SPA: no
2005.03.10 18:56:51 POP3 (website.com): Finding host
2005.03.10 18:56:51 POP3 (website.com): Connected to host
2005.03.10 18:56:51 POP3 (website.com): rx +OK X1 NT-POP3 Server
website.com (IMail 8.05 6452-2)
2005.03.10 18:56:51 POP3 (website.com): Authorizing to server
2005.03.10 18:56:51 POP3 (website.com): [tx] USER USER 2
2005.03.10 18:56:51 POP3 (website.com): rx +OK send your password
2005.03.10 18:56:51 POP3 (website.com): [tx] PASS *****
2005.03.10 18:56:51 POP3 (website.com): rx +OK maildrop locked and ready
2005.03.10 18:56:51 POP3 (website.com): Authorized to host
2005.03.10 18:56:51 POP3 (website.com): Connected to host
2005.03.10 18:56:51 POP3 (website.com): [tx] STAT
2005.03.10 18:56:52 POP3 (website.com): rx +OK 0 0
2005.03.10 18:56:52 POP3 (website.com): ==== Comparing server and local
blobs ====
2005.03.10 18:56:52 POP3 (website.com): 409091183 : gone
2005.03.10 18:56:52 POP3 (website.com):
==========================================
2005.03.10 18:56:52 POP3 (website.com): Do deletions: LoS: no
2005.03.10 18:56:52 POP3 (website.com): Disconnecting from host
2005.03.10 18:56:52 POP3 (website.com): [tx] QUIT
2005.03.10 18:56:52 POP3 (website.com): rx +OK POP3 Server saying Good-Bye
2005.03.10 18:56:52 POP3 (website.com): Disconnected from host
2005.03.10 18:56:52 POP3 (website.com): ========= Updates to blob =========
2005.03.10 18:56:52 POP3 (website.com): -B409091183
2005.03.10 18:56:52 POP3 (website.com): ========= Final blob =========
2005.03.10 18:56:52 POP3 (website.com): ===================================
2005.03.10 18:56:52 POP3 (website.com): End execution
2005.03.10 18:56:52 USER 2: ReportStatus: RSF_COMPLETED, hr = 0x00000000
2005.03.10 18:56:52 USER 2: Synch operation completed

2005.03.10 18:58:43 USER 1: Synch operation started (flags = 00000001)
2005.03.10 18:58:43 USER 1: UploadItems: 1 messages to send
2005.03.10 18:58:43 SMTP (website.com): Begin execution
2005.03.10 18:58:44 SMTP (website.com): Port: 25, Secu no, SPA: no
2005.03.10 18:58:44 SMTP (website.com): Finding host
2005.03.10 18:59:05 SMTP (website.com): Disconnected from host
2005.03.10 18:59:05 SMTP (website.com): End execution
2005.03.10 18:59:05 USER 1: ReportStatus: RSF_COMPLETED, hr = 0x80042109
2005.03.10 18:59:05 USER 1: Synch operation completed

2005.03.10 18:59:25 USER 1: Synch operation started (flags = 00000001)
2005.03.10 18:59:25 USER 1: UploadItems: 1 messages to send
2005.03.10 18:59:25 SMTP (website.com): Begin execution
2005.03.10 18:59:25 SMTP (website.com): Port: 25, Secu no, SPA: no
2005.03.10 18:59:25 SMTP (website.com): Finding host
2005.03.10 18:59:46 SMTP (website.com): Disconnected from host
2005.03.10 18:59:46 SMTP (website.com): End execution
2005.03.10 18:59:46 USER 1: ReportStatus: RSF_COMPLETED, hr = 0x80042109
2005.03.10 18:59:46 USER 1: Synch operation completed
2005.03.10 18:59:52 Resource manager terminated