Failed to connect to mailserver at "localhost" port 25

You need to be running a mail server locally. If this is Unix, enable sendmail If this is Windows install the Simple Mail Transfer Server (not sure if the name is correct) component of IIs. E.g. for windows 2003 follow this: http://msdn.microsoft.com/en-us/library/8b83ac7t.aspx

For sending mails using php mail function is used. But mail function requires SMTP server for sending emails. we need to mention SMTP host and SMTP port in php.ini file. Upon successful configuration of SMTP server mails will be sent successfully sent through php scripts.