According to Q238119 (http://support.microsoft.com/default.aspx?scid=kb;EN-US;q238119), 0x80040111 means MAPI_E_LOGON_FAILED. This implies that SQL Mail tried to connect to the exchange server using the information provided in the mail profile and it failed. Check your mail profile configuration. See
INF: How to Configure SQL Mail (Q263556)
http://support.microsoft.com/default.aspx?scid=kb;EN-US;q263556
for details.
INF: How to Configure SQL Mail (Q263556)
http://support.microsoft.com/default.aspx?scid=kb;EN-US;q263556
for details.
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