After updating my own phone to the iPhone 2.0 software, I see that they've moved the Outgoing Server Settings. There are now some additional options, and they are no longer located under Advanced settings for the account.
Under Outgoing Server, it should say SMTP and have gwsmtp.drew.edu already filled in for the server name. Select that, and then select gwsmtp.drew.edu again. From there, you can specify the outgoing port, etc. as you used to under Advanced options in previous versions of the software.