Try doing this:
1. Launch Mail
2. Launch Terminal from your user account that you are running Mail.app from.
3. If the computer account you are working from is not an admin-privileged account, in Terminal, type
su {yourAdminAcctShortUserName} and enter the admin password. (If you normally live and work out of your admin account, you can skip this step, BUT you should really consider setting up a separate admin account for computer administration activities, and convert your day-to-day account to a regular user (i.e., take away admin privileges. This recommendation is strictly from a network security viewpoint -- if anything nasty of a mac or unix flavor were to ever get into your machine via email, trojaned websites, etc., at least it'd be confined to that one home account and possibly, worst case, other user accounts within the same group, so it wouldn't (shouldn't) pervade every part of your OS -- okay so now I'll get off my soapbox about that).
4. Now type
sudo tcpdump -i en0 port 25 NOTE: use en0 if tethered to your DSL/cable modem by RJ-45 ethernet cable, use en1 if your are using wireless airport 802.11b/g. You'll be prompted for an admin password again.
5. Now switch back to Mail, create a medium-sized message (cut&paste something out of a quasi-lengthy Word document) and send it.
6. Back in Terminal If you see bunches and bunches and bunches of packets that look kinda like this:
19:37:07.017276 IP 192.168.0.2.49603 > cia-ia1.mx.aol.com.submission: FP 1159:1196(37) ack 3583 win 65535 <nop,nop,timestamp 330307419 2291111033>
then that would indicate that your email is leaving your machine and going to your mail provider's smtp server. Note that on my example here, my email left my machine on port 49603, to destination port (on AOL's mailserver) 587, which is, apparently, the numeric equivalent of what the
.submission thing is on
cia-ia1.mx.aol.com.submission. You are using port 25 with your mail server so yours will probably say
{your ISP's hostname}.smtp, since the "standard" smtp port is 25.
7. Do a
<control>-c to kill the tcpdump,
exit to log out of the admin account, and ⌘q if you're done with Terminal.
This should help you figure out if your mail is even leaving your machine. Let us know what's up when you try this.