You can check the SMTP logs to see what happens. Please follow these steps to set up and check SMTP log files.
a. Enable SMTP Logs
Open Start > Programs > Administrative Tools > Internet Information Service (IIS) Manager. Right click "Default SMTP Virtual Server" and choose "Properties". Check "Enable logging".
Click "Properties ..." to check all options.
b. Check SMTP Logs
You can check the SMTP log files at C:\WINDOWS\system32\LogFiles\SMTPSVC1.
c. Understand SMTP logs
You can open the log file and check the email logs. The most important field is the status code. "250" means ok.
Here are the meaning of SMTP status codes.
Status Code	Description
211	System status, or system help reply
214	Help message
220	Service ready
221	Service closing transmission channel 
250	Requested mail action okay, completed 
251	User not local; will forward to 
354	Start mail input; end with "."
421	Service not available, closing transmission channel
450	Requested mail action not taken: mailbox unavailable
451	Requested action aborted: local error in processing
452	Requested action not taken: insufficient system storage
500	Syntax error, command unrecognized
501	Syntax error in parameters or arguments
502	Command not implemented
503	Bad sequence of commands
504	Command parameter not implemented
550	Requested action not taken: mailbox unavailable
551	User not local; please try <....>
552	Requested mail action aborted: exceeded storage allocation
553	Requested action not taken: mailbox name not allowed
554	Transaction failed