This is what Mercury help says about creating new users:

When you are using Mercury/32 in an environment for which it has no network support module, the option to create and manage local users becomes available on the Configuration menu. This option allows you to manage the Pegasus Mail user configuration file PMAIL.USR, which is used by both Mercury/32 and Pegasus Mail to define and locate the users who exist on the system.

Important note:  Mercury reads the Pegasus Mail system file PMAIL.USR to obtain local user information, and caches it in memory while it runs. If you make changes to PMAIL.USR using Pegasus Mail or via any other process that manipulates the file directly, you will need open the Mercury user administration dialog while holding down the CTRL key, to force it to re-scan the list. Restarting Mercury will also work in this situation. Until Mercury refreshes its cached copy of the user list, it will not be able to deliver to users added via the alternative method. Mercury saves changes made by its own user dialog as soon as you click OK, so we recommend that you do all your user administration from within Mercury.

Username  the name the user will give to identify himself to Pegasus Mail. By default, this is also the user's address. In order to remain compatible with the DOS and Win16 versions of Pegasus Mail, usernames are limited to eight characters total length (because they are used as the name of a directory).

Personal name  the "familiar name" by which the user is known to the rest of the world. This is the name that appears in the Pegasus Mail Local user list function, and which Mercury uses when responding to mail server VERIFY and LOOKUP commands.

POP3 password  The password the user needs to enter when retrieving mail via POP3. If a user does not have a POP3 password, or has a blank POP3 password, he or she cannot retrieve mail from Mercury/32 using the POP3 protocol. The password can be from 1 to 48 characters in length

The dialog for creating users is found under Configuration / Manage local users...

/Rolf

I have Mercury up and running and can send test Email from it locally to my Email address. But when I try to send Email from a client on the Lan using the Outlook test Email function I get the following error: "Send test e-mail message: None of the authentication methods supported by this client are supported by your server." I have verified that I have the same user settings in both places.

I might also mention I have the following lines in the SMTP Server pane:

"Connecton from x.x.x.x (lan address) (date & time)

EHLO Allan

0 sec elapsed connection closed (time & date)"

I was able to fix this. I found a section in the setup to make a password file for users. Software is not really clear about this and the help files I read did't really explain this function.