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unable to recieve or send external e-mails

I am unable to send or recieve external e-mails on just one account i do get the following message
Your message did not reach some or all of the intended recipients.

      Subject:      test
      Sent:      3/5/2008 9:33 AM

The following recipient(s) could not be reached: on 3/5/2008 9:34 AM
            The e-mail address could not be found.  Perhaps the recipient moved to a different e-mail organization, or there was a mistake in the address.  Check the address and try again.
            < #5.1.8 smtp;550 5.1.8 <>... Sender address verification failed>

this account has worked for several years and just stopped yesterday afternoon

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Recreate the Outlook profile. You may first want to save away the address cache (the .nk2 file) which contains the addresses the user has prevoiusly sent successfully. You find the .nk2 file here:
C:\Documents and Settings\<user>\Application Data\Microsoft\Outlook
After recreating the profile you can restore the file to the same location assuming you used the same name for the new Outlook profile.
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I have already done this

I have also tested OWA and had the same issue
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This report relates to a message you sent with the following header fields:

  Message-id: <>
  Date: Wed, 05 Mar 2008 10:27:26 -0500
  From: "Chris West" <>
  To: <>
  Subject: test3

this is the message from my outside account

Your message cannot be delivered to the following recipients:

  Recipient address:
  Reason: Remote SMTP server has rejected address
  Diagnostic code: smtp;550 No such user - psmtp
  Remote system: dns; (TCP||47691||25)

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