Very strange. It occurred to me that the www version of this domain uses UE with CDOSYS and it has always worked fine. I copied the new site into a subdirectory of the www for this domain and the emails send fine. They do not send though from the subdomain.
This is the same site I had an issue with here: http://www.webassist.com/forums/posts.php?id=3086, where I had to have my Testing Server in the subdirectory rather than the subdomain site in order for Dreamweaver to show my recordsets in the bindings panel.
In each case the domains and subdomains are all on the same physical server utilizing the same mail server so it is not a mail server configuration issue. It is not worth troubleshooting though.
I am sure it will be fine in it's final destination as the code is good. Thank you for looking into it.