Here's the snippet from the error log. The SMTP server requests the password due to the use of LOGIN type authentication mode. The Chilkat control does not send it resulting in a failure to send the message:
250 OK
login_method: LOGIN
auth_login_1:
SmtpCmdSent: AUTH LOGIN<CRLF>
SmtpCmdResp: 334 VXNlcm5hbWU6
SmtpCmdSent: dml0YWxpZGE=<CRLF>
SmtpCmdResp: 334 UGFzc3dvcmQ6
SmtpCmdSent: ************<CRLF>
SmtpCmdResp: 535 5.0.0 Authentication Failed
535 5.0.0 Authentication Failed
Failed to get response to login password
ConnectionLog:
(leaveContext)
(leaveContext)
Failed to login using LOGIN method
(leaveContext)
David,
This is not a bug, but a simple invalid login/password failure. Your application simply passed an invalid login/password to the SMTP server, and the SMTP server responded with an "Authentication Failed".