phpmailer question - send multiple SMTPs

I have code that basically looks like this. During testing everything was working fine, but eventually I started to run into problems getting this error: Warning: fsockopen(): unable to connect to 127.0.0.1:25 in /hsphere/local/home/julescar/tbn.com.au/admin/class.smtp.php on line 105

$mail = new PHPMailer();
		$mail->IsSMTP();
		$mail->Host = "127.0.0.1";
		$mail->From = "newsletter@tbn.com.au";
		$mail->FromName = "Total Beauty Network";
		$mail->AddReplyTo("jody@tbn.com.au");
		while($row = mysql_fetch_array($result)) {
			$mail->AddAddress("chris@deutz.com.au");
			$mail->Body = $list;
			$mail->Subject = "Test Newsletter";
			$mail->Send();    
			$mail->ClearAllRecipients();
		}

Code (markup):

My question is, does anyone here happen to know if this is because each mail sent makes a new call to the SMTP server and eventually the system got too busy with my numerous tests. Or would this be due to some other strange reason?

Is there a way to make sure the connection is opened and closed with as little server load as possible???

CHeers,
Chris