SES Not working on localhost

I am using following wordpress plugin to send email.

http://coffee2code.com/wp-plugins/configure-smtp/

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I have done configuration, which is working fine for server but same configuration is giving following error on localhost.

An error was encountered while trying to send the test e-mail.
SMTP Error: Data not accepted.

On localhost, I tested gmail setting with this plugin, which works fine, but error comes with configured using Amazon SES settings.

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