What is the server error you are getting? Here is my working config:
ActionMailer::Base.smtp_settings = { :address => "mail.mydomain.com", :port => 25, :domain => "domain.com", :authentication => :login, :user_name => "user@mydomain.com", :password => "password" } ActionMailer::Base.delivery_method = :smtp ActionMailer::Base.perform_deliveries = true ActionMailer::Base.default_charset = "utf-8" ActionMailer::Base.default_content_type = "text/html"