Setup Local SMTP server for Sitecore local Email test.

Step-by-step guide

1. Go to http://papercut.codeplex.com/
2. Download and install the application
3. Once installed and running, go to the "Options" menu and set IP Address to you local IP address
4. That's it, you can now tell your application to send out emails to your local SMTP server

After this create a .config file for use this:

<?xml version="1.0"?>
<configuration>
  <sitecore>
    <settings>
      <!--Email configuration-->
      <setting name="Analytics.ClusterName" value="{HostName}" />
      <setting name="UseLocalMTA" value="true"/>
      <setting name="SMTP.Port" value="25" />
      <!-- SMTP server address (IP). -->
      <setting name="SMTP.Server" value="{localIpAddress}" />
    </settings>
  </sitecore>
</configuration>