Can't send email from Apple mail using hosted exchange since upgrade to 10.5.8

I've got a client who just upgraded to 10.8. Since doing so he can recieve email but not send it for a hosted exchange account. He can send and recieve from his personal pop account. It is a wireless connection.  I have tried the following without any success:
1. Verified all the config info was correct (server password etc) - no change
2. Deleted and re-added the account - same result
3. Deleted keychain data and readed the account - no change.
4. Ran disk utility (why not?) - no change
5. Removed an internet sharing app called open garden - no change
6. Installed 10.8.1 - no change
After trying all of this when we start mail everything looks good and then the outbound server abruptly goes "offline". The exchange host says there are no issues on their end. Internet works too. Email delivers/sends to his iPhone, iPad, and a home iMac that was also upgraded to 10.8.
Anyone with other ideas? This one has me stumped.
-Jonathan

I have the exact same issue, but with a standard IMAP account and SMTP.  My iPhone can send out, using the EXACT same settings, from the exact same WiFi connection...but the 10.8 MacBook cannot send at all.  The only account I can send out on is my iCloud account. 
I have also tried all the steps above...no luck.
I have also turned off all network filters and firewalls...no luck.  (And as I said above, my iPhone is on the exact same WiFi connection and using the exact same settings, and it can send fine.)
Other messages I've found via Google have suggested simply forcing the SMTP server to use Port 25, but that didn't work for me either.

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