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Installing the SMTP Service on Windows 2003 Server
Here is a link to a great list of the steps and screenshots for getting the SMTP / POP3 service set up on Windows 2003 Server:
http://www.ilopia.com/Articles/WindowsServer2003/EmailServer.aspx
Here a couple of more settings you need to do if you don't have a real domain to use and only want to be able to send email from the server:
In Administrative Tools -> Internet Information Services
Right-click the Default SMTP Virtual Server node and select Properties.
Click the Access tab and click the Relay button.
Click the Add button and add the IP: 127.0.0.1 to the list of "Only the list below" so that email will be sent from this server.
Then when setting up the email client to send email on the machine, set the following:
SMTP Host Name (Outgoing Mail): 127.0.0.1

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