Hi there.
I have had exactly the same problem since esterday,only my mail.app does dot regognise the outgoing server.
It is a pop account but is also setup on entourage and that works fine.
I have trashed the com.apple.mail plist which resets everything but the sending is intermitant.
Again this has only happened since a fresh tiger install, I wonder if it has anything to do with the latest update published.
Any ideas people???