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SMTP Error when requiring 128-bit encryption

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SMTP Error when requiring 128-bit encryption - 17.Apr.2002 6:51:00 PM

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I have my SMTP virtual server configured to require secure channel and I am able to successfully connect and send mail send mail using Outlook Express. However, if I require 128-bit encryption by selecting that option in the SMTP virtual server properties page, I get the following error when I try to connect and send (nothing else changed):
The message could not be sent because the server rejected the sender's e-mail address. The sender's e-mail address was 'myaddress@myserver.com'. Subject 'Test', Account: 'My Account', Server: 'myserver.com', Protocol: SMTP, Server Response: '505 5.7.3 Must issue a STARTTLS command first', Port 25, Secure(SSL): Yes, Server Error: 55, Error Number: 0x800CCC78.

I have the high encryption pack installed and Windows SP II. If I un-check the 'Require 128-bit encryption' setting, I am able to connect and send successfully again. I get the same error when using Outlook 2002 on the client as well. What could be causing this?

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