FIXED the SASL authd issue, I should have made it a little more clear what I've been doing.. I moved tomcat to :7070 (removed port 80 redirection).. I went in and edited ~/cyrus-sasl/etc/saslauthd.conf to say
http://hostname/service/soap ->
http://hostname:7070/service/soap
But, I'm still having mucho problems Sending or recieving. This is the MAJOR problem I seek an answer for. Currently DNS lookups is OFF, which allows me to recieve all mail, but I cannot send any mail out. Its probably a simple fix, I just can't find it.
Thanks!... btw do you guys sit on IRC anywhere?