I have a few problems regarding the email feature. First of all, I set it up using the tutorial for Mozilla Thunderbird and no matter what I tried, it would not accept my password. To make sure I was using the right password, I tried the webmail version (squirrel mail) and that worked fine, but I would preferably use a program. Problem #2 is that I can not figure out how to change the way the sender appears. When I sent test emails to my hotmail account, I do not want it to say from email@example.com, i’d rather it say “My Name”. How do you change this?
Did you use the dreamhost specific installation outlined in the wiki?
It worked great for me and I think it dealt with all the things you are concerned about.
Recommendation: IMAP. Unless you really want your machine to store all those emails and crash and eat them, IMAP them. Cool stuff especially if you use multiple machines. Email’s available everywhere and management on one is management on all.
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