Here is the mercuryC logs. i see that extra < in the email that the forums sent. Sorry i dont know alot about scripts and code (just enough to put up a site and forums, which then brings me here to bug you guys with my problems. Thanks again for all the help and if you need anymore files or logs let me know. I also posted on SMF forums http://www.simplemachines.org/community/index.php?topic=373500.0 havent gotten a response.

T 20100331 051920 208 Begin processing job MO000004 from postmaster@upinsmoke.bounceme.net
T 20100331 051920 208 Job MO000004 from postmaster@upinsmoke.bounceme.net processed OK.
T 20100331 081404 494 Begin processing job MO000004 from postmaster@upinsmoke.bounceme.net
T 20100331 081405 494 Job MO000004 from postmaster@upinsmoke.bounceme.net processed OK.
T 20100331 081926 8b4 Begin processing job MO000002 from  <postmaster@upinsmoke.bounceme.net
E 20100331 081926 8b4 501 5.5.2 MAIL FROM syntax error
T 20100331 081958 8b4 Begin processing job MO000005 from postmaster@upinsmoke.bounceme.net
T 20100331 081959 8b4 Job MO000005 from postmaster@upinsmoke.bounceme.net processed OK.
T 20100331 083053 26c Begin processing job MO000004 from postmaster@upinsmoke.bounceme.net
T 20100331 083053 26c Job MO000004 from postmaster@upinsmoke.bounceme.net processed OK.
T 20100331 083213 604 Begin processing job MO000004 from postmaster@upinsmoke.bounceme.net
T 20100331 083213 604 Job MO000004 from postmaster@upinsmoke.bounceme.net processed OK.
T 20100331 084306 604 Begin processing job MO00000C from postmaster@upinsmoke.bounceme.net
T 20100331 084306 604 Job MO00000C from postmaster@upinsmoke.bounceme.net processed OK.
T 20100331 084306 604 Begin processing job MO00000B from postmaster@upinsmoke.bounceme.net
T 20100331 084306 604 Job MO00000B from postmaster@upinsmoke.bounceme.net processed OK.
T 20100331 085327 604 Begin processing job MO000010 from postmaster@upinsmoke.bounceme.net
T 20100331 085328 604 Job MO000010 from postmaster@upinsmoke.bounceme.net processed OK.
T 20100331 104347 968 Begin processing job MO000003 from thomas@tstephenson.com
T 20100331 104348 968 Job MO000003 from thomas@tstephenson.com processed OK.
T 20100331 104655 968 Begin processing job MO000006 from postmaster@upinsmoke.bounceme.net
T 20100331 104656 968 Job MO000006 from postmaster@upinsmoke.bounceme.net processed OK.
T 20100331 104728 968 Begin processing job MO000007 from support@tstephenson.com
T 20100331 104728 968 Job MO000007 from support@tstephenson.com processed OK.
T 20100331 175205 390 Begin processing job MO000004 from postmaster@upinsmoke.bounceme.net
T 20100331 175205 390 Job MO000004 from postmaster@upinsmoke.bounceme.net processed OK.
T 20100331 175543 390 Begin processing job MO000008 from postmaster@upinsmoke.bounceme.net
T 20100331 175544 390 Job MO000008 from postmaster@upinsmoke.bounceme.net processed OK.

[quote user="FMM420"]

Sorry SMF=simple machine forum. Thats where i am trying to send the mail from (all emails for the forum i want to relay threw mercury. The relay server works fine for the emails i have. I think i need to add a domain in local domains. I have non local relay off. So i need to either set the forums to send as local or set mercury to allow a domain. Not sure wich instance is possible or best for my needs. I beleive i had it set as local with postmaster@localhost.com before the update of the forum software. Thanks in advanced for all suggestions.

When i use my domain postmaster@mydomain.com the messege stops at mercury core process with a sender address invalid error. When i use postmaster@localhost.com i get to the smtp client (relay version) with a 501 5.5.2 MAIL FROM syntax error

When i use my domain postmaster@mydomain.com

the messege stops at mercury core process with a sender address invalid

error. When i use postmaster@localhost.com

i get to the smtp client (relay version) with a 501 5.5.2 MAIL FROM

syntax error

Provide a copy of your mercury.ini file and we'll probably be able to recommend changes to get this working.

here it is

> here it is

Trimmed a lot, my comments/changes in-line.

[General]
myname:          upinsmoke.bounceme.net    # Canonical name for this server

Good host name, should have a MX host record but this will work with just an A record.

Answer Section:
    upinsmoke.bounceme.net, A, 66.66.45.90

timezone:        +0000    # Time Zone to add to date fields
file_api:        1    # Use the file api instead of queues
mailqueue:       C:\XAMPP\MERCURYMAIL\QUEUE    # Where mail should be put for delivery
smtpqueue:       C:\XAMPP\MERCURYMAIL\QUEUE    # Where the SMTP client should look for mail
newmail_path:    C:\XAMPP\MERCURYMAIL\MAIL\~N    # Where to find the users' WinPMail mailboxes.

[Protocols]
MERCURYS.DLL
MERCURYP.DLL
# MERCURYE.DLL
MERCURYC.DLL
# MERCURYD.DLL
# MERCURYH.DLL
# MERCURYF.DLL
# MERCURYW.DLL
# MERCURYX.DLL
# MERCURYI.DLL
# MERCURYB.DLL

[MercuryC]
Host : mail.roadrunner.com
Failfile : C:\xampp\MercuryMail\MERCURY\failure.mer
HELO : brucekerrick@roadrunner.com

Leave this blank.

Poll : 30
Scratch : C:\xampp\MercuryMail\SCRATCH
ReturnLines : 15
Timeout : 30
ESMTP : 0
SMTP_Username: brucekerrick
SMTP_Password: ******
POP3_Auth : 0
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYC\~y-~m-~d.log
Log_Verbose : 0
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYC
Session_logmode : 0

[MercuryS]
Debug : 1
HELO : upinsmoke.bounceme.net

Leave this blank since if blank it picks up the host name set above.

Logfile : C:\xampp\MercuryMail\LOGS\MERCURYS\~y-~m-~d.log
Timeout : 30
Relay : 0
Strict_Relay : 1
Allow_Illegals : 0
SMTP_Authentication : 0

Should turn on SMTP authentication if you want to send off server to remote addresses via MercuryS.

Session_logging : C:\xampp\MercuryMail\ESSIONS\MERCURYS
Session_logmode : 0
Compliance_Settings : 0
Maximum_Failed_Rcpts : 4
Max_Relay_Attempts : 4
SSL_Mode : 0
ST_Blacklisting : 288
No_VRFY : 0
SMTP_ConnFlags : 0


[Domains]
;server name : domain name
localhost: localhost
localhost: [127.0.0.1]
localhost: [66.66.45.90]
localhost: upinsmoke.bounceme.net
localhost: fmm.no-ip.org

Try this for your domains section.  I've removed all of the non-domain type stuff and added and IP address that matches the listed domain names.  Now mail to any user of the domains is considered valid local e-mail addresses.

 i still get the sender address ' <postmaster@upinsmoke.bounceme.net' is invalid.
Processing failed deliveries and generating notifications.

<"Up in Smoke Forum" <postmast - Notification discarded - potential loop.

not sure if i understood you right. this is what i have now.  Thanks alot for all your help..

[General]
myname:          upinsmoke.bounceme.net    # Canonical name for this server
Answer Section:
    upinsmoke.bounceme.net, A, 66.66.45.90
timezone:        +0000    # Time Zone to add to date fields
file_api:        1    # Use the file api instead of queues
mailqueue:       C:\XAMPP\MERCURYMAIL\QUEUE    # Where mail should be put for delivery
smtpqueue:       C:\XAMPP\MERCURYMAIL\QUEUE    # Where the SMTP client should look for mail
newmail_path:    C:\XAMPP\MERCURYMAIL\MAIL\~N    # Where to find the users' WinPMail mailboxes.

[Protocols]
MERCURYS.DLL
MERCURYP.DLL
# MERCURYE.DLL
MERCURYC.DLL
# MERCURYD.DLL
# MERCURYH.DLL
# MERCURYF.DLL
# MERCURYW.DLL
# MERCURYX.DLL
# MERCURYI.DLL
# MERCURYB.DLL

[Mercury]
failfile:      C:\xampp\MercuryMail\MERCURY\failure.mer    # Delivery failure notification template
confirmfile:   C:\xampp\MercuryMail\MERCURY\confirm.mer    # Delivery confirmation template
aliasfile:     C:\xampp\MercuryMail\MERCURY\alias.mer    # System-wide alias file
synfile:       C:\xampp\MercuryMail\MERCURY\synonym.mer    # User synonym database
listfile:      C:\xampp\MercuryMail\MERCURY\lists.mer    # List of lists
logfile:       C:\xampp\MercuryMail\LOGS\CORE\~y-~m-~d.log    # Traffic logging file
logwidth:      30    # Width of address fields in logfile
retpath:       1    # Do/Don't use 'return-path' for errors
maxhops:       30    # Used to detect mailing loops
gullible:      0    # If NZ, don't validate 'From' fields
poll:          10   # Seconds between queue polling cycles
scratch:       C:\xampp\MercuryMail\SCRATCH    # Where we can write temp files
returnlines:   15    # How many lines of failed messages to return
postmaster:    postmaster    # NetWare UIC of postmaster
broadcast:     1    # Yes, we want broadcast notifications, but
receipts:      0    # ... no broadcasts for receipt confirmations
PM_notify:     1    # Do/Don't send errors to the postmaster
change_owner:  1    # Change message ownership to recipient
auto_tzone:    1    # If NZ, obtain timezone information from OS
LogLevel:      15    # System message reporting level
LogMax:        100    # Maximum number of system messages to store
RetryPeriod:   30    # Period between job retries (minutes)
MaxRetries:    16    # Maximum number of times a job can fail
TwoPasses:     1    # If NZ, process submission queue in 2 passes
Autoaddress:   0    # If NZ, auto-generate user addresses based on name
Daily_exit:    0    # If NZ, auto-restart each day after maintenance
No_Areply:     0    # If NZ, disable automatic replies system-wide
Alt_Forward:   0    # If NZ, allow alternate forwarding specification
Maint_hour:    2    # Hour for daily maintenance (24-hour clock)
Maint_min:     0    # Minute for daily maintenance
Retry_Mode:    0    # If NZ, use progressive backoff for queue retries
Local_DSNs:    1    # If NZ generate Delivery Status for local users only
DSN_time1:     10800    # Seconds deferred before first DSN is sent
DSN_time2:     86400    # Seconds deferred before second DSN is sent
DSN_time3:     259200    # Seconds deferred before third DSN is sent
Host_in_title: 0    # If NZ, show hostname in system tray and taskbar
Lingering:     0    # Enable or disable 'lingering mailboxes'
Linger_Timeout: 60   # Seconds before a lingering mailbox is shut down
Alert_Host:    notify.pmail.com    # Host to check for licensee advisories
Alert_Interval: 720   # Frequency in minutes (min 240) for checks
Alert_Flags:   3    # Flags controlling advisory checks

[MercuryC]
Host : mail.roadrunner.com
Failfile : C:\xampp\MercuryMail\MERCURY\failure.mer
Poll : 30
Scratch : C:\xampp\MercuryMail\SCRATCH
ReturnLines : 15
Timeout : 30
ESMTP : 0
SMTP_Username: brucekerrick
SMTP_Password: ******
POP3_Auth : 0
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYC\~y-~m-~d.log
Log_Verbose : 0
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYC
Session_logmode : 0

[MercuryE]
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYE
Session_logmode : 0
Poll : 15
Timeout : 60
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYE\~y-~m-~d.log
Log_Verbose : 0
DNS_Timeout : 20
DNS_Retries : 4
Transcripts : 1
MaxThreads : 10

[MercuryD]
Scratch : C:\xampp\MercuryMail\SCRATCH\MERCURYD
Timeout : 30
Poll : 30
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYD
Session_logmode : 0

[MercuryS]
Debug : 1
HELO : brucekerrick
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYS\~y-~m-~d.log
Timeout : 30
Relay : 0
Strict_Relay : 1
Allow_Illegals : 0
SMTP_Authentication : 0
Session_logging : C:\xampp\MercuryMail\ESSIONS\MERCURYS
Session_logmode : 0
Compliance_Settings : 0
Maximum_Failed_Rcpts : 4
Max_Relay_Attempts : 4
SSL_Mode : 0
ST_Blacklisting : 288
No_VRFY : 0
SMTP_ConnFlags : 0

[MercuryP]
Scratch : C:\xampp\MercuryMail\SCRATCH\MercuryP
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYP\~y-~m-~d.log
Stack : 32768
Mark_Read : 1
SSL_Mode : 0
Login_Disabled : 0
UIDL_nul_list : 1
New_UIDs : 1
No_NUL_passwords : 1
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYP
Session_logmode : 0
Timeout : 60

[MercuryX]
Cmd_Wait: 1
IE4_Dialling: 0
Use_ETRN: 0
Clients_only: 0
Drain_queues: 1
Sunday: 0000,0000,0,0,0,0
Monday: 0000,0000,0,0,0,0
Tuesday: 0000,0000,0,0,0,0
Wednesday: 0000,0000,0,0,0,0
Thursday: 0000,0000,0,0,0,0
Friday: 0000,0000,0,0,0,0
Saturday: 0000,0000,0,0,0,0

[Domains]
;server name: domain name
localhost: localhost
localhost: [127.0.0.1]
localhost: [66.66.45.90]
localhost: upinsmoke.bounceme.net
localhost: fmm.no-ip.org

[Maiser]
Maiser:          Maiser   # 'Username' of mail server account
Helpfile:        C:\xampp\MercuryMail\MERCURY\maiser.hlp   # Help sent on failed maiser requests
Lookupfile:      C:\xampp\MercuryMail\MERCURY\maiser.lkp   # Format file for the 'lookup' command
Send_dir:        C:\xampp\MercuryMail\MERCURY\SENDABLE   # Directory for the 'send' command
Logfile:         C:\xampp\MercuryMail\LOGS\MAISER\~y-~m-~d.log   # Mail server log file
Notify:          C:\xampp\MercuryMail\MERCURY\TMP   # Dir. for pending 'notify' commands
NoList:          N   # If 'Y', disable the 'list' command
Local_only:      Y   # If 'Y', local 'notify' commands only

[MercuryH]
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYH\~y-~m-~d.log
Timeout : 30

[MercuryI]
Scratch : C:\xampp\MercuryMail\SCRATCH\MERCURYI
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYI\~y-~m-~d.log
Timeout : 120
Server_Port : 143
Charset : ISO-8859-1
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYI
Session_logmode : 0
Idle_Timeout : 1800
SSL_Mode : 0
Login_Disabled : 0
No_NUL_passwords : 1

[MercuryB]
Scratch : C:\xampp\MercuryMail\SCRATCH\MERCURYB
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYB\~y-~m-~d.log
Timeout : 120
Server_Port : 2224
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYB
Session_logmode : 0
Idle_Timeout : 1800

[Groups]

[Rewrite]

[Statistics]
StatFlags:    0  # Statistical reporting settings
STF_Hours:    24  # How often to write stat log files
STM_Hours:    24  # How often to e-mail stat log files

I think you may have broken the syntax for the mercury.ini file. Please remove these lines:

Answer Section:
    upinsmoke.bounceme.net, A, 66.66.45.90

And unless you actually want to refer to the loopback address, please avoid using the word localhost anywhere in the server configuration. It might work but it will cause unneeded confusion.

/Rolf

Ok i removed the Anser section. I still get the same error. Do i also need to remove the localhost from the Domains section? I was also looking at my forums server settings and it is set to phpdefault for mailtype.

> Ok i removed the Anser section. I still get the same error. Do i also
> need to remove the localhost from the Domains section? I was also
> looking at my forums server settings and it is set to phpdefault for
> mailtype.

Again, show us the Mercury.ini file.

There is a character missing in the Session_logging path for MercuryS, but that shouldn't make any difference here. You did restart Mercury after editing mercury.ini, right?

/Rolf 

[General]
myname:          upinsmoke.bounceme.net    # Canonical name for this server
timezone:        +0000    # Time Zone to add to date fields
file_api:        1    # Use the file api instead of queues
mailqueue:       C:\XAMPP\MERCURYMAIL\QUEUE    # Where mail should be put for delivery
smtpqueue:       C:\XAMPP\MERCURYMAIL\QUEUE    # Where the SMTP client should look for mail
newmail_path:    C:\XAMPP\MERCURYMAIL\MAIL\~N    # Where to find the users' WinPMail mailboxes.

[Protocols]
MERCURYS.DLL
MERCURYP.DLL
# MERCURYE.DLL
MERCURYC.DLL
# MERCURYD.DLL
# MERCURYH.DLL
# MERCURYF.DLL
# MERCURYW.DLL
# MERCURYX.DLL
# MERCURYI.DLL
# MERCURYB.DLL

[Mercury]
failfile:      C:\xampp\MercuryMail\MERCURY\failure.mer    # Delivery failure notification template
confirmfile:   C:\xampp\MercuryMail\MERCURY\confirm.mer    # Delivery confirmation template
aliasfile:     C:\xampp\MercuryMail\MERCURY\alias.mer    # System-wide alias file
synfile:       C:\xampp\MercuryMail\MERCURY\synonym.mer    # User synonym database
listfile:      C:\xampp\MercuryMail\MERCURY\lists.mer    # List of lists
logfile:       C:\xampp\MercuryMail\LOGS\CORE\~y-~m-~d.log    # Traffic logging file
logwidth:      30    # Width of address fields in logfile
retpath:       1    # Do/Don't use 'return-path' for errors
maxhops:       30    # Used to detect mailing loops
gullible:      0    # If NZ, don't validate 'From' fields
poll:          10   # Seconds between queue polling cycles
scratch:       C:\xampp\MercuryMail\SCRATCH    # Where we can write temp files
returnlines:   15    # How many lines of failed messages to return
postmaster:    postmaster    # NetWare UIC of postmaster
broadcast:     1    # Yes, we want broadcast notifications, but
receipts:      0    # ... no broadcasts for receipt confirmations
PM_notify:     1    # Do/Don't send errors to the postmaster
change_owner:  1    # Change message ownership to recipient
auto_tzone:    1    # If NZ, obtain timezone information from OS
LogLevel:      15    # System message reporting level
LogMax:        100    # Maximum number of system messages to store
RetryPeriod:   30    # Period between job retries (minutes)
MaxRetries:    16    # Maximum number of times a job can fail
TwoPasses:     1    # If NZ, process submission queue in 2 passes
Autoaddress:   0    # If NZ, auto-generate user addresses based on name
Daily_exit:    0    # If NZ, auto-restart each day after maintenance
No_Areply:     0    # If NZ, disable automatic replies system-wide
Alt_Forward:   0    # If NZ, allow alternate forwarding specification
Maint_hour:    2    # Hour for daily maintenance (24-hour clock)
Maint_min:     0    # Minute for daily maintenance
Retry_Mode:    0    # If NZ, use progressive backoff for queue retries
Local_DSNs:    1    # If NZ generate Delivery Status for local users only
DSN_time1:     10800    # Seconds deferred before first DSN is sent
DSN_time2:     86400    # Seconds deferred before second DSN is sent
DSN_time3:     259200    # Seconds deferred before third DSN is sent
Host_in_title: 0    # If NZ, show hostname in system tray and taskbar
Lingering:     0    # Enable or disable 'lingering mailboxes'
Linger_Timeout: 60   # Seconds before a lingering mailbox is shut down
Alert_Host:    notify.pmail.com    # Host to check for licensee advisories
Alert_Interval: 720   # Frequency in minutes (min 240) for checks
Alert_Flags:   3    # Flags controlling advisory checks

[MercuryC]
Host : mail.roadrunner.com
Failfile : C:\xampp\MercuryMail\MERCURY\failure.mer
Poll : 30
Scratch : C:\xampp\MercuryMail\SCRATCH
ReturnLines : 15
Timeout : 30
ESMTP : 0
SMTP_Username: brucekerrick
SMTP_Password: 123456
POP3_Auth : 0
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYC\~y-~m-~d.log
Log_Verbose : 0
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYC
Session_logmode : 0

[MercuryE]
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYE
Session_logmode : 0
Poll : 15
Timeout : 60
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYE\~y-~m-~d.log
Log_Verbose : 0
DNS_Timeout : 20
DNS_Retries : 4
Transcripts : 1
MaxThreads : 10

[MercuryD]
Scratch : C:\xampp\MercuryMail\SCRATCH\MERCURYD
Timeout : 30
Poll : 30
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYD
Session_logmode : 0

[MercuryS]
Debug : 1
HELO : brucekerrick
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYS\~y-~m-~d.log
Timeout : 30
Relay : 0
Strict_Relay : 1
Allow_Illegals : 0
SMTP_Authentication : 0
Session_logging : C:\xampp\MercuryMail\ESSIONS\MERCURYS
Session_logmode : 0
Compliance_Settings : 0
Maximum_Failed_Rcpts : 4
Max_Relay_Attempts : 4
SSL_Mode : 0
ST_Blacklisting : 288
No_VRFY : 0
SMTP_ConnFlags : 0

[MercuryP]
Scratch : C:\xampp\MercuryMail\SCRATCH\MercuryP
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYP\~y-~m-~d.log
Stack : 32768
Mark_Read : 1
SSL_Mode : 0
Login_Disabled : 0
UIDL_nul_list : 1
New_UIDs : 1
No_NUL_passwords : 1
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYP
Session_logmode : 0
Timeout : 60

[MercuryX]
Cmd_Wait: 1
IE4_Dialling: 0
Use_ETRN: 0
Clients_only: 0
Drain_queues: 1
Sunday: 0000,0000,0,0,0,0
Monday: 0000,0000,0,0,0,0
Tuesday: 0000,0000,0,0,0,0
Wednesday: 0000,0000,0,0,0,0
Thursday: 0000,0000,0,0,0,0
Friday: 0000,0000,0,0,0,0
Saturday: 0000,0000,0,0,0,0

[Domains]
;server name: domain name
localhost: localhost
localhost: [127.0.0.1]
localhost: [66.66.45.90]
localhost: upinsmoke.bounceme.net
localhost: fmm.no-ip.org

[Maiser]
Maiser:          Maiser   # 'Username' of mail server account
Helpfile:        C:\xampp\MercuryMail\MERCURY\maiser.hlp   # Help sent on failed maiser requests
Lookupfile:      C:\xampp\MercuryMail\MERCURY\maiser.lkp   # Format file for the 'lookup' command
Send_dir:        C:\xampp\MercuryMail\MERCURY\SENDABLE   # Directory for the 'send' command
Logfile:         C:\xampp\MercuryMail\LOGS\MAISER\~y-~m-~d.log   # Mail server log file
Notify:          C:\xampp\MercuryMail\MERCURY\TMP   # Dir. for pending 'notify' commands
NoList:          N   # If 'Y', disable the 'list' command
Local_only:      Y   # If 'Y', local 'notify' commands only

[MercuryH]
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYH\~y-~m-~d.log
Timeout : 30

[MercuryI]
Scratch : C:\xampp\MercuryMail\SCRATCH\MERCURYI
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYI\~y-~m-~d.log
Timeout : 120
Server_Port : 143
Charset : ISO-8859-1
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYI
Session_logmode : 0
Idle_Timeout : 1800
SSL_Mode : 0
Login_Disabled : 0
No_NUL_passwords : 1

[MercuryB]
Scratch : C:\xampp\MercuryMail\SCRATCH\MERCURYB
Logfile : C:\xampp\MercuryMail\LOGS\MERCURYB\~y-~m-~d.log
Timeout : 120
Server_Port : 2224
Session_logging : C:\xampp\MercuryMail\SESSIONS\MERCURYB
Session_logmode : 0
Idle_Timeout : 1800

[Groups]

[Rewrite]

[Statistics]
StatFlags:    0  # Statistical reporting settings
STF_Hours:    24  # How often to write stat log files
STM_Hours:    24  # How often to e-mail stat log files

here is  a screen shot

Do you have a user named 'postmaster' ?

From the help:

The postmaster account is usually an alias to a real user on your system, and this is the expectation within Mercury. Enter in this field the username of the user on the machine where Mercury is running who is to act as your postmaster.

i have postmaster as the username of postmaster under the general of mercury core module. do i need to change this to my name?

Yes, it must be a valid user name.

i have postmaster listed as a local user, i also have Admin and bruce as users defined for the system. I tried each one of them in the username of postmaster box and get the same error.

The postmaster address is built in, so there shouldn't be a user account with that name. Change in mercury.ini to:

postmaster:    admin    # NetWare UIC of postmaster

Then please try again after restarting Mercury.

/Rolf