First of all make sure you have the correct information in your SMTP settings (page "Administration" - "Settings" - "Notifications" - section "E-Mail sending settings").
Then
check if you have McAfee VirusScan or any other Antivirus/Firewall
software installed on your computer. These applications might block TCP port 25. Unblock this port in firewall/antivirus settings.Article ID: 12, Created On: 2/26/2008, Modified: 11/3/2011