Just wanted to add some notes regarding setting up Email and Method.
As we have numerous clients with Exchange, we have a very simple model for integration with Exchange. As per the diagram attached, Method simply tries to send mail to your Exchange server using basic authentication settings. If your Exchange box is configured as a closed relay (where only certain IP addresses are allowed to connect to it), you have to allow these IP addresses in Exchange to accept a request to send mail from Method. Otherwise, Method simply tries to log into your mail server with your authentication settings.
Please note, that although we would love to help each individual case of setting up of Exchange, because there are numerous ways of setting up Exchange (sometimes in complex, Active Directory environments), we do not provide support on the configuration of Exchange servers. Here, the onus is on your end to configure your Exchange server to accept a Method SMTP connection.