flooded with email failure messages

This may indicate taht a virus has infected your system,use the search Find -> Files or Folders to identify all unknown files

Run the virus scan on your computer to determine if the computer is infected with virus,recent post in Tech Republic wasfacing the same email problem so a search of TechRepublic may be of help.
The virus is a version of the Love Letter virus

Get the latest anti-virus definition files from you supplier to get it downloaded and applied. Also if a particular PC appears to be infected take it of line before you disinfect. As in pull the network cable out and virus scan it off the network.

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