Notification error if external email resolved

AyaNova user was experiencing the following issue:

-internal notifications (memo and popup) work with no issues
-notification that should be by external email results in error in the Notification Log (last 7 days)

ChilkatSSPI.authenticate: failed to prepare next package
NTML authentication failed
Failed to login using NTLM method
Failed to connect to SMTP server
The user did the following to resolve this issue:

-edited the Logon properties of the Event Generator service to use the local computer’s administrator account
-created a local user on the computer that matched the username and password of the domain entered in the Global Settings for logging into their SMTP server