mail testing errors...

[BGSWebDesign]

DW,

I see these errors, even though I can personally access the bounced email account (using webmail), and SMTP seems to be fine:
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Testing mail servers..

[Bounce Handling]
Is enabled?  Yes, Using a mailbox
Connecting.. Connected!
Verifying username and password... Failed!
The bounced message mailbox is not configured correctly.

[SMTP Server]
Is enabled?  Yes
Connecting to SMTP server.. Connected!
Sending test email to remote address.. Problem setting receiver to Remote Test Address
The SMTP server is not configured correctly. Check your settings.

---------------------------------------------------------------

Any idea WHAT is going on here?

[DW]

On Plesk you should be able to use "localhost" as your hostname for both bounce and SMTP.  No "AUTH" should be required for SMTP.  You should have one method of bounce enabled with a "bounce to address" on a domain on the server.

bounce.cgi is set up by the administrator as follows, with bounce.cgi uploaded to your /cgi-bin FTP folder (not /httpdocs/cgi-bin, just /cgi-bin)

The following (admin) shell commands are needed to create the alias:

# create the email alias - the account bounce@example.com should not exist in Plesk
echo "|/usr/bin/perl /var/www/example.com/cgi-bin/bounce.cgi" > /var/qmail/mailnames/example.com/.qmail-bounce

# give access to cgi-bin to the mailer
chmod +x /var/www/example.com/cgi-bin

-- Info about script timeouts --

To disable timeouts safe mode must be turned off for your domain.  This is done (Plesk 8+) from the Hosting -> Setup page (where you set your FTP info).  Your host may need to change the setting.