How to send email from ASP application on Windows 2008 Server

My ASP, classic ASP application is giving me a sever error on a Windows 2008 Server. It works fine on Windows 2003 server. The error is a 500 internal server error. Does CDO not work on Windows 2008?

EDIT
THe error is: The transport failed to connect to the server.

Here is my mail function:

function SendMail(mailFrom, mailTo, mailSubject, mailBody, bHtml)
Const cdoSendUsingMethod        = _
"http://schemas.microsoft.com/cdo/configuration/sendusing"
Const cdoSendUsingPort          = 2
Const cdoSMTPServer             = _
"http://schemas.microsoft.com/cdo/configuration/smtpserver"
Const cdoSMTPServerPort         = _
"http://schemas.microsoft.com/cdo/configuration/smtpserverport"
Const cdoSMTPConnectionTimeout  = _
"http://schemas.microsoft.com/cdo/configuration/smtpconnectiontimeout"
Const cdoSMTPAuthenticate       = _
"http://schemas.microsoft.com/cdo/configuration/smtpauthenticate"
Const cdoBasic                  = 1
Const cdoSendUserName           = _
"http://schemas.microsoft.com/cdo/configuration/sendusername"
Const cdoSendPassword           = _
"http://schemas.microsoft.com/cdo/configuration/sendpassword"
Const smtpServer = "localhost"

Dim objConfig  ' As CDO.Configuration
Dim objMessage ' As CDO.Message
Dim Fields     ' As ADODB.Fields

' Get a handle on the config object and it's fields
Set objConfig = Server.CreateObject("CDO.Configuration")
Set Fields = objConfig.Fields

' Set config fields we care about
With Fields
.Item(cdoSendUsingMethod)       = cdoSendUsingPort
.Item(cdoSMTPServer)            = smtpServer
.Item(cdoSMTPServerPort)        = 25
.Item(cdoSMTPConnectionTimeout) = 10
.Item(cdoSMTPAuthenticate)      = cdoBasic
.Item(cdoSendUserName)          = "username"
.Item(cdoSendPassword)          = "password"

.Update
End With

Set objMessage = Server.CreateObject("CDO.Message")

Set objMessage.Configuration = objConfig

With objMessage
.To       = mailTo
.From     = mailFrom
.Subject  = mailSubject
if bHtml then
.HtmlBody = mailBody
else    
.TextBody = mailBody
end if
.Send
End With

Set Fields = Nothing
Set objMessage = Nothing
Set objConfig = Nothing

end function