Unable to telnet to port 25 from within or without the network.

Hi there, I have been wrestling with firewall and mail settings in Server Admin to enable mail services for a client and could use some assistance as I am new to mail administration on OS X.

I am trying to isolate whether or not I am being blocked by the firewall or by erroneous setup in Mail Settings.

The firewall service on the network "any" has a check for Mail: SMPT for both TCP and UPD on the "Services" tab.

At this point I am just working with SMTP for outbound mail only. I have a suspicion that I am not setting the parameters for local internet domain name, and internet host name correctly; or that the settings I have are correct, but not valid.

The hostname of the server is ##-###-##-###.atgi.net, where ## correspond with the numbers in each octet of the IP address. The MX record is pointing to smtp.CLIENT'SDOMAN.com. (where CLIENTS'SDOMAIN is the actual domain for this company) (Registrar is Network Solutions, I do not have DNS enabled on this server)

SMTP settings are as follows:
Enable SMTP is checked
Allow Incoming mail is not checked
domain name is: ##-###-##-###.atgi.net
Host Name is: smtp.CLIENT'SDOMAIN.com
Everything else in mail settings not active.

Here are the SMTP log entires when I sart mail service:
Oct 9 00:02:32 66-182-60-162 postfix/postfix-script: stopping the
Postfix mail system
Oct 9 00:02:32 66-182-60-162 postfix/master[13377]: terminating on signal 15
Oct 9 00:02:32 66-182-60-162 postfix/master[14147]: daemon started --
version 2.1.5

Questions:
1. Shouldn't I be able to see smptd running at this point?
2. Telnet to port 25 on the server itself and outside the network is rejected, wth?
3. Should I change the local internet domain ##-###-##-### to be the client's actual domain name?

Any help that anyone could provide would be greatly appreciated. If I can provide more supporting documentation, please just let me know what would be useful. I am quite new to OS X / Darwin, more comfortable with linux.

Thanks in advance