Setting up Outlook 2010 for IMAP exchange 2010

With Outlook 2010 I'm trying to configure outlook 2010 to connect to my exchange 2010 server without needing to VPN in.  I put in my credentials and when I hit test I see that I was successful in logging into the incoming mail server, but when it tries to send out a test email it fails.  Am I missing something?  My blackberry and android device can connect just fine and I checked the settings in my HTC Incredible and the settings match.  The incredible works just fine.  Any suggestions?
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Why IMAP while you can use Outlook Anywhere?
To configure outlook look at second part of article:

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