IIS smtp setting - PHP mail not leaving Queue Folder

[manichean 0]

Hello,

I would like my default virtual SMTP server to send email using php, when I use the Mail() function in php I get no errors and the NTFS_12868f1001c6ab2700000004.EML(just an example as this changes) file is created and placed into the Queue folder inside my c:\inetpub\mailroot\Queue. It never sends from this folder the email just stays there.

At first I thought it was a php.ini file problem but my settings are 100% correct(as I understand it) let me give you some specs. Currently I think its a relay problem but im just not getting this right  :-\

[b]PHP.INI[/b]
SMTP = localhost
smtp_port = 25
sendmail_from = mhodge_txs@yahoo.com

[b]PC SETUP[/b]
PHP Version 5.1.3
IIS 5.1
Windows XP SP 2

[b]Default Websites[/b]
Right click properties
Server Extensions tab ->  Specifiy how mail should be sent -> Settings button
Web servers mail address : @localhost
Contact Address : @localhost
SMTP mail server: localhost

[b]Default SMTP virtual server settings[/b]
Right click properties
IP Addresses: All Assigned
Access Tab -> Connection : All except list below
Access Tab -> Relay : All except list below

[b]telnet localhost 25[/b]
220 manimobile Microsoft ESMTP MAIL Service, Version: 6.0.2600.2180 ready at  We
d, 19 Jul 2006 13:48:47 +0200

Please help this is most frustrating
Thanks

[manichean 0]

Anyone else having similat problems ?

[redarrow 1]

Turn your firewall off.

[manichean 0]

Thanks for the suggestion but still no luck, turning off the firewall did not help, I already had the port (25) open.

This is making me frustrated.....  >:(

Anyone got any other ideas