Have you set up SMTP service to route the mail?
If not, obtain the ip address of your ISP's SMTP server.
open IIS admin control and right click the default smtp server.
On the delivery tab, click the advanced button.
put your isp's smtp server ip address in the Smart host box, BUT PUT IN IN IN SQUARE BRACKETS... eg. [214.212.2.2]
Tick the box to attempt direct delivery before sending to smart host.
It may also be worth checking you have a valid to, and from address, as this often chokes cdonts.