Thank you very much for your assistance.  Your suggested fix did solve the problem.  I very much appreciate your help and your quick response.

My email is set up through the AOL server and my address is howard@cpe-services.com

I just set up Pegasus and am receiving incoming mail without any problem. However I am unable to send outgoing mail.  Every attempt bounces back with the following message:

Delivery has failed on the enclosed message for the following reasons reported either by the mail delivery system on the mail relay host or the local TCP/IP transport module:

553 5.7.1 howard@cpe-services.com: Sender address rejected: not logged in

I have tried every setting imaginable, but can not send any mail...although receiving it is not aa problem.  CAN ANYONE HELP!!!!!

Thanks oyu for any assistance you can offer. 

> 553 5.7.1 howard@cpe-services.com: Sender address rejected: not logged in
>
> I have tried every setting imaginable, but can not send any mail...although receiving it is not a problem.  CAN ANYONE HELP!!!!!

You need to go to Tools | Internet options | (Sending) SMTP, edit the SMTP setup, select the "Security" tab and select the "SMTP Authentication".  I use the second option since I use AOL via IMAP4 without a POP3 account; you could use option 3 and select your AOL POP3 setup.