It looks like your anti-virus's firewall is blocking the SMTP communications. Try to allow connections by configuring the anti-virus's firewall on port 25 (default SMTP port) or any other port number that you are using. See your antivirus documentation. It will tell you where to find the settings to achieve this.

Installed what on the server! I repeat, you need to download the DocX file as a binary (probably), get the user to save it on their local (D:) drive and then the user must open the file in word. Without elevated permissions Silverlight cannot access a local drive. Never underestimate the power of human stupidity RAH