Okay, you usually have two options from your virtual control panel, let's take PHPNuke for example, go to your administrative configuration options.

You should see two choices, either e-mail via boards or through SMTP. If you choose SMTP, you have to make sure that all the data correlates with your SMTP account, or you will receive an error, oftentimes using localhost as your username with no password solves this. If it's still not working, try to enable e-mail via board.

It will usually look something like this: (This is the setup for PHPbb)

Use SMTP Server for email:

Say yes if you want or have to send email via a named server instead of the local mail function: Yes or No

SMTP Server Address

SMTP Username
Only enter a username if your smtp server requires it

SMTP Password
Only enter a password if your smtp server requires it

(I use host.sk and localhost is what I use, and you would put that under SMTP Server Address.)
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