Question : connecting to outlook 2003 from SBS 2003 without joining the domain

I installed a SBS 2003 server for a client last year. The owner decided he hated having to press
<Ctrl> <Alt> <Delete> to get into his computer. So I removed the XP workstations from the SBS domain. Recently the office staff realized they need at least internal E-mail. I tried setting up Outlook 2003 to use password authentication, which works on my regular Exchange server, but SBS won't connect. When I set up the account and use "Check Name", the server responds, but then times out when I open the program.
The wizards don't offer any options I can find. Is this a permission problem or a "can't get there from here" problem

Answer : connecting to outlook 2003 from SBS 2003 without joining the domain

set his outlook exchange profile with rpc over http.

he will have to enter his password every time he starts outlook though.