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1) receive mail from ISP for users
2) store received mail on Linux server in user directory /home/bob
3) user can see these messages using Outlook on their WindowsXP boxes
and move to permanant save folders or leave for deletion.
4) using a script? or program administrator can purge outdated mail,
ie: longer than 6 months.
I have installed sendmail and procmail. Upon testing I can send mail but cannot receive any.
receive mail from ISP for users
This leaves me a bit confused about what you are trying to accomplish.
Do you mean to receive all the mail for a domain on the server? Then you need to install an SMTP server, and add or modify the MX DNS record for the domain to point to the server.
Further, you will need to install a POP and/or IMAP server, which will allow your users to download mail from your server. Otherwise, mail will just sit on the local system once it is received.
If you want to receive mail on behalf of your users from their mail accounts on various ISPs, you will need them to supply you with their login credentials (good luck!) and will need some software to fetch mail from the ISPs onto your server. You will also have to make sure you are not violating each ISP's terms of service.
While I am reasonably certain that such software exists, I can't offer any suggestions.
1. DNS has to be configured to get the mail to your box
2. sendmail (or whatever MTA) has to be configured to accept the mail for the domain and deliver it locally
3. something has to provide access to your client (IMAP, POP, local access) so it can pick it up.
I'd start by looking at /var/log/maillog to see which step you're at.
2) sendmail has been configured (for as much as I now how to)
3) I can send mail thru outlook via maillinux.company.local but can't receive.
I have also been ttold that I need to set up IMAP in order to have the separate directories that I want. Is this a part of sendmail setup?
From that file your IMAP server will pick up the mail. dovecot is a good pop/imap server, and is relatively easy to configure.