Make sure you are using an account that you created through your mail  manager section of your control panel, not the default name for the  account. 
Make sure your email program is setup as follows: 
Server: mail.yourdomain.com 
Login: account%yourdomain.com 
Pass: password 
(Remember: Use '%' instead of '@')
Example: 
test@yourdomain.com <- incorrect 
test%yourdomain.com <- CORRECT 
(The '%' syntax only applies to Netscape/Eudora)
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