Your email client is sending (via SMTP) to localhost port 7362. Normally it would send to your ISP's SMTP server (such as mail.comcast.net for me) on port 25.
It's likely that some software (as justice said - antivirus or msgtag or something) has set up the client so that the mail gets sent to it first, then it would pass the email on to the real SMTP server. Apparently that 'filtering' software is not running.
You can go into Outlook's (or Outlook Express') email account configuration and change the SMTP server settings to use your ISP's SMTP server on port 25, or make sure whatever software is supposed to be filtering your sent email is running.