Re: email setup
You can try using the log of my setup at: http://219.93.41.229:86/wiki/tiki-index.php?page=Setting+Up+Email+Update. I had problems too. Mind, this log is for beginners, i had no idea what i was doing and went down many dead-ends before finding out what the problem was. All i really needed was the client authorization setup for sendmail for relay server. Your problem is probably different, but just in case my log might be useful.
Sorry didn't read your post properly, it looks like a different problem.