Hi Pop,
Did you ever get a resolution to your email problem? I have a similar problem with my wife's laptop. It has OE setup with two accounts, one for her and one for my email address. Mine works fine but when she tries to send an email via her account, the error box shows there was an error on sending but no error description is showing in the text box. The outgoing email stays in the Outbox but it has in fact been sent. OE then keeps sending the email out but thinks it hasn't suceeded and would end up sending it indefinitely if it wasn't manually deleted from the outbox.
I have tried all the suggestions i can find (deleting outbox.dbx files, switching off email scanning etc) with no success.
Has anyone any other ideas to help?