Hi,
Does your IIS SMTP work well in local domain?
Please test it and make sure you can send or receive the email using local domain account by IIS SMTP.
“The user or users have been added successfully, but there was an error in sending the e-mail message. The server may not be set up correctly to send e-mail."
Can you let me know the email account of the user within errors, is it a account of another email server?
Hope this helps
Thanks!
Stanfford