I can receive email just fine over both POP3 and IMAP.
I downloaded the ESET removal tool, then boot into safe mode and ran it as instructed by ESET.
After reboot, I tried sending email again .. no luck (same error).
I did a "repair" for Avast from "Add/Remove Programs" and tried sending email again .. no luck (same error).
Do I really need to try uninstalling/reinstalling Avast?
I recall now (late of course) that a couple months ago I had trialled Avast Pro. Then I had just uninstalled Nod32, installed Avast, and everything worked fine. After the trial, I uninstalled Avast and reinstalled Nod32 and everything worked fine. There was one change since then: for some reason, my ISP stopped accepting TLS connections over SMTP and I had to change my email client to "don't use SSL" (this was with Nod32). So when I had trialled Avast previously (and it had worked), it was under slightly different conditions. Of course that was a few versions of Avast ago too.
Here's an excerpt from my mail.log:
1/24/2011 7:25:58 PM 00000FD0: Connected to SMTP server x.x.x.x 25
1/24/2011 7:25:58 PM 00000FD0: received (S) 41
1/24/2011 7:25:58 PM 00000FD0: <-SMTP 220 xxx yyy ESMTP server ready
1/24/2011 7:25:58 PM 00000FD0: sent (C) 41
1/24/2011 7:25:58 PM 00000FD0: received (C) 16
1/24/2011 7:25:58 PM 00000FD0: ->SMTP EHLO localhost
1/24/2011 7:25:58 PM 00000FD0: sent (S) 16
1/24/2011 7:25:58 PM 00000FD0: received (S) 24
1/24/2011 7:25:58 PM 00000FD0: <-SMTP 421 EHLO Helo rejected
1/24/2011 7:25:58 PM 00000FD0: sent (C) 24
1/24/2011 7:25:58 PM 00000FD0: connection closed (S) 0
1/24/2011 7:25:58 PM 00000FD0: --SMTP Finishing connection handler
I did some work with SMTP years ago but using HELO. I'm not familiar with EHLO; is EHLO (as opposed to HELO) coming from the Avast SMTP proxy? I presume so since I can send email if I disable outgoing scans. Could it be that my ISP doesn't support EHLO?