Avast Free 7.0.1466 causing Outlook 2007 error 0x800CCC67 on two computers

I can no longer send email with Outlook using Avast Free 7.0.1466. Outlook 2007 reports the sending error 0x800CCC67. This is occurring on another computer as well, for the last 2-3 weeks. I can get around it by disabling outbound email scanning.

Thoughts?
Thanks,
Scott

It happened on every outlook user using a local ISP called Dakotacom.net. I beleive that outbound scanning is redundant, it also causes double emails at another set of ISPs. Turning it off is correct. Avast! is already scanning everything going throught that machine anyways.