Do you receive mail?  If not, then see bug Bug #25106 and references to other 
bugs.
Just tried to set-up an Exchange 2007 account in Evolution 2.21.90
in Hardy Alpha 4 without success.  This is a confirmed bug, but upstream.

I see you are using an SMTP server so I should assume that the account
is set-up with IMAP for receiving and SMTP for sending.  In Feisty I can
send and receive to an Exchange 2007 account using IMAP and SMTP.

Question:  While incoming mail uses encryption and password authentication, the 
outgoing server does not require encryption and authentication and would not 
work
if so configured.  Try changing that.

** Changed in: evolution (Ubuntu)
       Status: New => Incomplete

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Evolution Will not send mail via Exchange 2007
https://bugs.launchpad.net/bugs/172599
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