cannot send mail through localhost

I am trying to test my form locally, however it doesn't get picked up my mailbox. The form is fine and I even set the access in IIS to 127.0.0.1 so the relay error is not a porblem anymore. This must be a setup problem. The mail is a standard mailform. I just use IIS thought a mail server is in place when Iinstalled it. I get no errors. Telnet is working on port 23 "microsofts esmtp service ready..." Do I have to start the mail server as a service? If so how do Ido this? Ross Help please, Ross