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If you have web application that allows you to use CDOSYS choice for sending out emails, this may apply to you. By default the SMTP server and related setup on Windows 2008 is not configured to be useful for such needs. You need to carry out a few bare-minimum settings to make it run for your web app.

 1) PICKUP folder write access: Allowing write access to C:\inetpub\mailroot\Pickup folder (your location may be different). CDOSYS needs to write output to it. You can right click on this folder and go to security tab to change access permissions suitably (depends on how fancy you want to get with the security thing). As long as IIS application is able to write to it, you should be good.

2) SMTP Server - Even though IIS 7 has a newer fancy admin interface, SMTP is still stuck at IIS 6.0 Manager console. A few things to watch for here. By default it may be stopped. That would also mean that your Services setup is for manual start. You may want to change it (from Services tool) to automatic so that it is not left STOPPED on reboot.

From the IIS 6.0 Manager, right click on STMP Virtual Server and select properties and go to  Access tab. Here you make sure that STMP is allowing relay of your IIS emails.

 There may be some other things unique to your application or server, but the above should give you some traction.

Harry Pannu