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Outlook 2002 error: 0x8004210B can't send e-mail!

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This computer is running Windows XP Home (SP3), using Outlook 2002 for e-mail. I have AT&T dialup (yes, I know).

Outlook is using the POP3/SMTP server to send/receive.
I am configured properly to receive from AT&T's server and two different G-Mail accounts. I can send/receive properly on the on-line AT&T account (bypassing Outlook).

HOWEVER, when I try send from Outlook (new, reply or forward) I get error 0x8004210B: "Sending and receiving reported error 0x8004210B. The operation timed out waiting for a response from the sending smtp server. If you continue to receive this message, contact your server administrator or Internet Service Provider."

Contacting AT&T CustServ was useless. I was given conflicting settings for the POP3 server from several different operators.
This was supposed to be corrected in SP3 and does not seem to be the case here.
I applied MS hotfixes designated for this problem in knowledge base 827149 with no results.

Can anyone help please? My vacation is ending and I still haven't fixed my Dad's computer.

Thanks for any replies,

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