I’ve always ran my wordpress site from my local windows computer. By doing this I learned how to configure apache, php and mysql, but I never got around to learning how to configure a mail server and never really wanted to anyways.
In a google search for some sort of free mail server i would be able to use, I discovered a nice plugin that does it for me. Configure SMTP by Scott Reilly. It allows you to configure SMTP mailing for your wordpress site, it even allows you to use Gmail which is what I did and seems to work great even on WordPress 3.0.