Windows vista except ultimate edition does not support SMTP server in IIS (It is true to the best of my knowledge. If you know how to set it up from control panel, please comment this posting).

In case your are looking for a temporary solution then you can download this free SMTP server.

http://www.softstack.com/freesmtp.html

Hope it should help someone like me not able to install SMTP sever by using control panel in vista.