Entourage Error: -17897

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I am trying to set up Entourage 2008 on my iMac (OSX Leopard) to woork with the email accounts provided with my web hosting service.

My server requires me to use port 5050 for SMTP and 5051 for POP, they also require that mail is checked (POP) before sending (SMTP). I have set up all these details, including the SMTP "server requires login" option and even put in the same account username and password, but I can still only receive mail and can't send. The error message says

Authentication failed because Entourage doesn't support any of the available authentication methods.

and tells me this is Error: -17897

Research online with Microsoft Knowledge base tells me that this is related to NTLM version 1 authentication:

This problem occurs when the Post Office Protocol version 3 (POP3) server or the Simple Mail Transfer Protocol (SMTP) server uses NTLM version 1 authentication. Entourage 2004 for Mac no longer supports NTLM version 1 authentication.

From searching several forums there seem to be people out there with this problem, but I don't find a solution. Is there any help apart from "Use Mail instead"? Could Microsoft really be that committed to customer dissatisfaction??
 
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