I am using outlook express 6. the problem i'm getting is this:

An unknown error has occurred. Subject 'a picture for you', Account: 'Margi', Server: '127.0.0.1', Protocol: SMTP, Server Response: '554 Mailbox unavailable.', Port: 25, Secure(SSL): No, Server Error: 554, Error Number: 0x800CCC6F

what the heck does that mean?? i am using ypop so i can use my regular yahoo email on outlook. maybe someone knows what's going on.

I'm experiencing the same problem that you are. Did you figure out how to resolve it?

Server: '127.0.0.1' <-- this is a reference to your own machine's address to itself.
_________________________All machines route to themselves using that address.

You both may be dealing with a type of email born malware - Subject: "A picture for you".

I'd highly recommend that you both head over to the malware removal forum and post your machine's HJT Log.

Doug