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But now when i tried to use squirellmail, I can send emails but everytime someone try to email me, it goes to root account instead of coming to squirellmail..
Thanks in advance
Squirrelmail is a web frontend for your mail server. It has no internal intelligence nor postbox facilities. It relies totally on the underlying mail server. So if incomming mail is not visible in Squirrelmail or not routed to the correct user mailbox, it is because your mail server (Postfix as you mentioned) isn't setup correctly.
As you can see I am really frustrated with this mail thing and at this point I am looking for easy way out..
GoDaddy (and some other hosting providers) want you to route all outgoing mail from your server through their SMTP server. This is often done to scan for virusses and/or detect spamming from your server.
If your hosting provider has dedicated outbound mailserver and they provide a usefull service like virus scanning, you may want to use them. Otherwise I would advice you to send mail directly from your server to the destination. It is one less hop in the process and if mail doesn't arrive at the destination, you can look in your own log files, rather than asking the support department of your hosting provider to look in their mail logs.