Well, the first thing about the output is the hosts file is incorrect. The file should look like this:
Code:
127.0.0.1 localhost.localdomain localhost
10.0.1.2 mail.pgtim.bw mail
The other output you've provided for the MX and A records show that there aren't any on that DNS server.
What does the output of the following show:
Code:
dig mail.yourdomain.com mx
dig mail.yourdomain.com any
where mail.yourdomain.com is the FQDN of your server.