Hi All, I was able to resolve the problem... Actually, I had this problem before and completely forgot about this. It seems that on some linux-distro installation it does not install the cron and file utility. Apparently, Zimbra NEEDS those 2 files to be able to process the sending and receiving of emails. I would HIGHLY recommend Zimbra to document this or better yet make this a requirement during install.
Note: with out the above 2 files ALL will seem to work. Check the logs (/var/log/zimbra.log)... You should see an error referencing that the "file" utility is not available. Hope this will help the next person
Joe