The problem is not with gmail as whatever address I use as the email To: address fails with the same 550 error.
If I define Thunderbird with the user details for the @ntlworld.com email account I can send & receive email so the issue is with Outlook Express talking via SMTP to the NTLWORLD mail servers.
I have tried disabling the Grisoft AVG mail plugin and still get the 550 error in OE.
I can telnet on port 25 to the mail server from the DOS command prompt e.g.
telnet smtp.ntlworld.com 25 and I get a response from the mail server so my firewall is passing TCP Port 25 traffic.
A Google search of this error seems to show lots of stuff relating to NTLWORLD so it looks like their mail servers are a bit flakey. Only problem with the Google search is that I have not found a fix to the OE problem.
Any ideas?