This is well documented on ms website. You certainly don't have to be logged in to use an outlook client, whoever told you this is talking rubbish. There are many smtp mail procs available, including from microsoft, which will allow sending of mail - assuming port 25 isn't blocked. Some require IIS installed , some don't. ( I'm sure there will such on this site too )

To use outlook your ( sql and/or agent&nbsp service account needs to be a domain user with a mail account. Log onto the box as the service account, install the outlook client and set the profile - link in sql server - absolute doddle!

Using other mail may be more tricky - 2005 supports smtp directly.