problems with mail()

[chriscloyd]

i have a script where i can deny a users application

heres the mailing script
[code]if(isset($message)){
$message = addslashes(htmlspecialchars($message));
$email = $email;
$subject = $subject;
$headers1 = "MIME-Version: 1.0\r\n";
$headers1 .= "Content-type: text/html; charset=iso-8859-1\r\n";
$headers1 .= "From: [email protected]\r\n";

if(!mail('$email','$subject','$message','$headers1')){
echo 'Could Not Send Email, Did not Delete Application';
} else {
mysql_query("DELETE FROM app WHERE email='$email'")
or die(mysql_error());
echo '<br><br><br>Email Has Been Sent And Application Has Been Deleted';
}
} else {
echo '<form name="form1" method="post" action="?function=deny">
  <table width="332" border="0" cellspacing="5" cellpadding="0">
<tr>
  <td width="73">Email</td>
  <td width="244">'.$_GET['email'].'
  <input name="email" type="hidden" id="email" value="'.$_GET['email'].'"></td>
</tr>
<tr>
  <td>Subject</td>
  <td>Application Review
  <input name="subject" type="hidden" id="subject" value="Application Review"></td>
</tr>
<tr>
  <td valign="top"><p>Message<br>
  <span class="var"><strong>Default<br>
Message
  </strong></span></p>        </td>
  <td><textarea name="message" cols="30" rows="5" class="inputs">Application Review
-----------------------------------------

To Whom This May Concern,

I regret to inform you that you failed your application
process.  It might not be that you failed exactly
but, we might have filled up that position.  If you would
like another chance feel free to send another application
but, write more infomation about your self and give more
expirence.

Application Procceser
Conception-Host.com
#CHOST</textarea></td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td><input type="submit" name="Submit" value="Send"></td>
</tr>
  </table>
</form>';
}[/code]

but it says the echo that email had been sent but its not sending and i get this wierd error above that message that says
/var/chroot/home/content/c/h/r/chriscloyd/dead.letter... Saved message in /var/chroot/home/content/c/h/r/chriscloyd/dead.letter