yes, email can be on its own server.
for isps (like pac bell), users might get one of numerous ips depending on where they are and how they connect to the internet. if someone sends massive amounts of spam from an ip address the entire subnet might be blocked. which means any email sent from your ip will be ignored because all the remote email server knows is that your ip is "close enough" to the ip for the spammer. there isn't much you can do to fix this. talk to your isp if you find that your email server is blocked by remote email servers, but i doubt they'll be able to help you out. your ip might be in a list such as MAPS RBL.
http://www.everything2.com/index.pl?node_id=516500