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Why is Sugar showing a false SMTP error message in log?

Question asked by Kerry Kerry on Dec 3, 2014
Latest reply on Dec 17, 2014 by Lpu8er Lpu8er
V6.5.16 CE
I have linked Sugar to mail SMTP mail server. When I send email, it looks like it is sent correctly, and the receiver gets it, however the Sugar log reports the following error:
ERROR:Password not accepted from server. Code: 535 Reply: 535 Incorrect authentication data

My regular mail is on the same server, so I tested it with a address and yes, the mail gets there as well.

So why is sugar reporting an error. It destroys my confidence in the email system.

Any help appreciated