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Sending mass amount of mail limit? + mail provider.

Hi.
We are going to do a job for the public sector and since there is, well you know how things are in Greece, i really cannot afford to mess this up.So since i have no knowledge of email sending stuff i though i should ask.
In this job we will notify linked public institutions and we may have to send from a few hundred emails at a time to 4-5 thousand at a time.
1)So is the SmtpClient class able to handle large amounts of outgoing emails, send bulk or one by one?Does it have a crash limit?Anyone pushed it to the limit?
2)We are looking for an email host so we can avoid the emails get spammed. I am looking at dyn.com , anyone have any idea or suggestions for this. We need something cheap (dyn selected plan is 70$ per month) and reliable.I don't know, something like mailchip reliable?
P.S. Excuse the mailchip example but i have no idea on email stuff so it may be a bad site, not sure.
Thanks.

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