Ok after speaking with our support guy he took down our site and ran some test, with the responce of "sorry don't know whats wrong".. Now I know there is a solution to this problem. Here is the config for the php.ini file. were using a unix and apache.
; For Unix only. You may supply arguments as well (default: "sendmail -t -i").
sendmail_path = "sendmail_path="/usr/sbin/sendmail -t -i -OQueueDirectory=/var/spool/mqueue/"
I read another post from someone else about relaying denied for a possible cause, and I'm looking into that. Does anyone have any other type solutions?