You don't NEED to setup a whole mail server for the purpose of verification e-mails.  You can use the mail server for any e-mail account you have a username and password for.  So long as the XP pc is connected to the internet and can connect to the mail server.

eg.

From Host->Host Settings->Advanced Settings->SMTP Server Settings->

SMTP Server: mail.hotmail.com
SMTP Username: yourusername
SMTP Password: ************

Update

This works great for me.  The e-mails will come from the account you enter so you may want to setup an alias.

Hope this helps

Colin 

Are you sure you want to run your own mail server?  It isn't a requirement to do so in order to use DNN and send the verification emails, etc. and running a mail server also means configuring DNS and mx records and all that; it's quite a hassle compared to simply using the SMTP server your ISP assigns for you.

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Shane Miller