This error does not originate from the server on which your site is hosted. Possible causes:

1. Wrong configuration of the email client
2. Your ISP blocks port 25
3. A DNS problem on your ISP level

The problem can generally be solved by:

1. Restart your computer
2. Verify that Outlook (or the email client used) has "SMTP: My server requires authentication" checked. Also check the correctness of the access data to the email account.
3. temporarily disable your antivirus/firewall

If none of the above solutions solve your problem, check if port 25/26 is open (http://kbase.hostx.ro/entry/88/)

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