Exchange 2013 and Suitecrm 7.6.4 on windows

I am having trouble getting test emails to work.
All i am getting in the suitecrm log is the following:

3 20:17:02 2016 [3524][1][FATAL] SugarPHPMailer encountered an error: An outgoing mail server is not configured to send emails. Please configure an outgoing mail server or select an outgoing mail server for the mail account that you are using in Settings >> Mail Account.

Mon Jun 13 20:17:02 2016 [3524][1][FATAL] SugarPHPMailer encountered an error: SMTP connect() failed.

I have my logs set to debug also I have set smtpdebug=2 in class.phpmailer.php

Also i can telnet from this system to mail server over port 25 and send emails using the account specified in the email settings in suitecrm.

So how can i see the error logs so i can troubleshoot it or what is a the fix??