Outlook 2007 - Unable to use FROM address for sending emails

Using Outlook 2007, connecting to an Exchange 2003 server (sp2).
For account management with a third party need to use the FROM : address functionality within outlook.
I can add the FROM address under the FROM ADDRESS in a new message but whenever an email is sent using this the following error message is returned and the email is not sent.

The following recipient(s) cannot be reached:

      Paul Smith on 31/10/2013 15:36
            You do not have permission to send to this recipient.  For assistance, contact your system administrator.

I am guessing its a AD/Exchange persmisions issue but not sure what setting is needed where  ?
Who is Participating?
yo_beeConnect With a Mentor Director of Information TechnologyCommented:
You need to update the AD security for this user to have Rights to SEND AS.
Here is a link that will help illustrate it.

ccfcfcAuthor Commented:
Thank you, this seems to have worked.
yo_beeDirector of Information TechnologyCommented:
Just note: you may need to update the SDADMINHolder container so it sticks.
I have seen it be applied and then a 1 hr or so later the security is removed.
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