Thanks a lot
 

I have tried setting up an SMTP server to send confirmation emails from my site. as well as announcments.

The problem i have is every time i have done so the server is up for about a day before i get hounded by endless amounts of spam trying to relay itself through my server.

All i need it the ability to send emails from a local address to an internet address.

not relay mail from the internet or recieve emails back.

 On another note when i had it up before i noticed hotmail refused to accept mail from me. any way to fix that?
 

All i need it the ability to send emails from a local address to an internet address.

You can block all connections to MercuryS  by using the Allow IP addresses from the local lan and Refuse of 0.0.0.1 to 255.255.255.255.  The spammer will still try to connect but since they are blocked MercuryS will reject immediately.  FWIW, you can not load MercuryS at all if you are using WinPMail in the queue mode. 

On another note when i had it up before i noticed hotmail refused to accept mail from me. any way to fix that?

Hotmail may rejecting your mail based on how the server is responding or connecting.  Use session logging to find out.  You might have to convert to using MercuryC to send via your ISPs server.