Ok, so setting up Godaddy email to work with Dotnetnuke wasn’t as easy as it should have been. Here is the quick fix for my issue, it is necessary to use a different smtp host name than the one they give you.
Solution: My Godaddy email address said that the smtp server name was smtpout.secureserver.net, this one doesn’t work for DNN instead use relay-hosting.secureserver.net

I got this information from a post over at BlueCol, you can read the whole thing here  BlueColDNNSNMPConfiguration

Aditional information from Godaddy’s help
Please note that the use of our outgoing mail server (SMTP) requires that you ‘Activate’ the ‘SMTP Relay’ option of the email account. Please use the following directions to do this:

1. Login to your customer account and then select ‘My Account.’
2. Select ‘Email’ from the ‘My Products’ menu.
3. Select ‘Manage Account’.
4. If the relays are active it should show how many are available. If they are not active select the email account.
5. In the section ‘SMTP Relaying’ select 250 from the drop down.
6. Select ‘Ok’ to activate the relays (please note that it may take up to 15 minutes for the relays to become active).

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