I think you (or your administrator) are confused about the problem.
First, please confirm that your AOLserver config file is pointing to the right mail server. Is the mail server running on the same machine as AOLserver? If not, did you configure the mail server in your AOLserver config file? (Look for the ns/parameters section in c:\OpenACS\nsd4\binstallw.tcl and tell us what you see.) The mail server setting is ns_param smtphost or ns_param mailhost.
Assuming you configured that properly, we need more information, including what mail server you are using (Exchange?) and what types of authentication it accepts.
