Found out what's going on. This issue is likely to happen when using an ISP or simple SMTP Server as opposed to say Exchange Server.
Since version 9.3 of ChilkatMail (the version with 2013 installs which is amazingly not the newest version of Chilkat !!!! but still supports Gmail) it makes the assumption that if you provide a SMTP username and password (in Company Maint / Email) that the SMTP server will respond with an authentication method. That's what it's supposed to do.
However, some ISPs like Roadrunner will not respond with the auth method thinking it is more secure this way. And so when you run the Email Test in Company Maint it will tell you LOGIN authentication method failed. This is because the ISP didn't respond with an auth method to begin with and ergo Chilkat defaulted to the LOGIN auth method which is not supported by the ISP.
In the Chilkat test script I posted in another SocialCast thread for Jim W, it fails as well. The solution in the script is to add this 1 line:
mailman.SmtpAuthMethod = ""NONE""
Now the real question is - is there a way to pass that info from MAS 90/200 to Chilkat like I can with the script? I haven't looked close enough at 2013 yet.