Entourage 3260 error

I am having a problem using Microsoft Entourage 2004. I am using an Imap configuration and have the same configuration on another Mac in the same network without the problem. I am able to recieve emails but i am unable to send emails, Recieve error 3260 and states "Entourage cannot connect to the server. Verify that your computer is connected to the network. I have found http://support.microsoft.com/?kbid=824887 but the problem is not specific to the account. Problem exists on multiple accounts.

User1 is using Mac 1 without a problem, User 2 recieves 3260 error when using entourage on Mac 2. User1 recieves same problem on Mac2 and user2 doesn't recieve error using Mac1. Computer/ application on computer is at fault. Any ideas?

Note: i have also tried using different exchange servers and email accounts. I have old more then one job and have exchange account at other job as well. Same error recieved/ same problem, able to recieve emails but get 3260 error when attempting to send, not server specific.
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strungConnect With a Mentor Commented:
Check the instructions here:  http://www.entourage.mvps.org/exchange/ to make sure you have the settings on the Mac correct. There is also some troubleshooting advise at the same link.
usmaxAuthor Commented:
Thanks, from that website i found

Although this did not solve the problem with setting up an IMAP account, it was still an effective solution. Points deserved.
usmaxAuthor Commented:
Opps, should have put the below comment here
IMAP is not the way to go with Exchange, for sure.
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