Hi Ted,
Did you sync the email account settings to the iPhone or set them up on the iPhone by choosing Mail>AOL?
If you synced the email settings from your computer where you use an alternate outgoing mail server, the iPhone iPhone would not be able to send emails unless its connected to the same network as the computer.
Try deleting the account from the iPhone, just tap Settings> Mail, Contacts, Calendars> tap the account> Delete Account.
You can also try the general send mail troubleshooting tips in this article:
http://support.apple.com/kb/TS1426
-Jason