If you use a Microsoft SMTP server. The server announces GSSAPI, NTLM and LOGIN as supported authentication methods.

220 smtp.server.local Microsoft ESMTP MAIL Service, Version: 6.0.3790.4675 ready at  Sun, 1 Jan 2012 18:29:54 +0100 
EHLO lx01
250-smtp.server.local Hello [x.x.x.x]
250-TURN
250-SIZE
250-ETRN
250-PIPELINING
250-DSN
250-ENHANCEDSTATUSCODES
250-8bitmime
250-BINARYMIME
250-CHUNKING
250-VRFY
250-X-EXPS GSSAPI NTLM LOGIN
250-X-EXPS=LOGIN
250-AUTH GSSAPI NTLM LOGIN
250-AUTH=LOGIN
250-X-LINK2STATE
250-XEXCH50
250 OK

The eZSMTPTransport class uses ezcMailSmtpTransport() and doesn't set any preferred AUTH method. So it tries all supported methods from most secure to weakest. In this case, it tries NTLM first, fails, then LOGIN (GSSAPI isn't supported by ezcMailSmtpTransport).

This seems to confuse the Microsoft SMTP server and it gives a wrong status code, so the ezc-Class throws a "SMTP server does not accept AUTH LOGIN." exception. The mail (in our case the "Reset password" mail) is not sent.

A temporary solution is to add the line:

$options->preferredAuthMethod = ezcMailSmtpTransport::AUTH_LOGIN;

after line #87 in lib/ezutils/classes/ezsmtptransport.php . Using this, sending mails works fine.

A better solution would be to make the preferred auth method configurable in the site.ini MailSettings.

Or maybe this is even a problem with the ezcMailSmtpTransport class.

Steps to reproduce

1. set up eZ with a Microsoft SMTP server, configured to accept NTLM and LOGIN, provide eZ with SMTP credentials that only work with the LOGIN method.
2. make eZ send a mail
3. see error.log