SMTP configuration question

I have a application that I can send error reports to myself via SMTP. I have added the SMTP feature to one of my other server but am not sure what to do from there. I do not have access to port 80 or any other mail/exchange servers.

 I am running 2008r2 with IIS 7.5. This is the error I get when I try to send a test:

System.Net.Mail.SmtpException: Failure sending mail. ---> System.IO.IOException: Unable to read data from the transport connection: net_io_connectionclosed.
   --- End of inner exception stack trace ---
   at Microsoft.UpdateServices.Internal.BaseApi.SoapExceptionProcessor.DeserializeAndThrow(SoapException soapException)
   at Microsoft.UpdateServices.Internal.DatabaseAccess.AdminDataAccessProxy.SendTestEmail(String emailLanguage, String smtpUserName, String senderEmailAddress, String smtpHostName, Int32 smtpPort, String recipients)
   at Microsoft.UpdateServices.Internal.BaseApi.EmailNotificationConfiguration.SendTestEmail()
   at Microsoft.UpdateServices.UI.SnapIn.Dialogs.EmailNotificationSettingsDialog.backgroundWorker_DoWork(Object sender, DoWorkEventArgs e)