Outlook 2003 Timeout errors when sending files with attachments - please answer

This is the following error I receive when sending emails with attachments in Outlook 2003.

Task 'Telstra Email - Sending' reported error (0x8004210B) : 'The operation timed out waiting for a response from the sending (SMTP) server. If you continue to receive this message, contact your server administrator or Internet service provider (ISP).

The strange part about it is that the recipients usually receive the email but I get the above error and the email continues to stay in the outbox and tries to resend every 5 mins (which is what I have my email set up to do).  

Is there any way I can fix this problem?  It is driving me nuts.

I do not have scanning outgoing mail selected on my AV (PC-Cillin).  I do not have SSL selected either.
JaneSaundersAsked:
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Mike CaldwellConsultant to IP industryCommented:
I had the same problem.  Would kick in at about 2Mb size of attachments.  Would actually send multiple copies, but keep it in the Outbox.  The cure was easy: increase the time out time.  This is done with a slider under the "advanced" box for each email account.
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meintsiCommented:
If your attachments are that large, it may be that it's exceding the mail service providers limits, (IE. the free hotmail/yahoo accounts).
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Mike CaldwellConsultant to IP industryCommented:
I own my domain and my ISP puts no limits on file size.  Once I increased the time out it went no problem.
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