Check SMTP server
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To make sure the SMTP server is running, you can telnet to the machine on port 25.

1.Go to a command prompt on the server computer  
2.Type "Telnet localhost 25" (without the quotes)  
You should get back "220 Blue Squirrel SMTP"

If the SMTP server is not running, make sure that you don't have another SMTP server running on port 25.