Below is a SecurityFocus Bugtraq post:

AFFECTED VERSIONS

- Mozilla Thunderbird 1.0.7 (20050923)
- Mozilla Thunderbird 1.5 Beta 2 (20051006)
- possibly other programs using the Mozilla mail component

DESCRIPTION

The SMTP negotiation in Mozilla Thunderbird is implemented in a way that if a secure data exchange (CRAM-MD5 or STARTTLS) between client and server can not be established, an insecure method is used instead. The user is not notified of this and can not cancel this insecure data exchange. An intermediate attacker can utilize this behaviour to gain sensitive account/password information. As CRAM-MD5 and TLS were designed to avoid eavesdropping attacks, currently the implementation of Mozilla's SMTP client fails to meet these design goals.

More info http://www.securityfocus.com/archive/1/414556/30/0/threaded