MOSS : Enable Incoming Emails

The procedure for incoming emails is very similar to the outgoing emails i.e. changing settings in the central administration. But to enable incoming emails to be delivered to document libraries I had to take the following steps described on msdn:
Especially if you see your incoming mails sitting in the Queue folder

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Practical experience in setting this up in a Windows Enterprise Server 2008/IIS 7.0/Exchange Server 2007 farm environment showed that there is one more step required to get Incoming e-mails delivered to the actual Drop folder on the SharePoint SMTP server so that SharePoint can then pick them up from there. This applies if you choose Automatic mode under Configure incoming e-mail settings>Step 4. and can even apply if you choose Advanced mode as well (if you are still using the SMTP server in IIS).

The step is that you need to tell the SMTP Service that it is the destination for the domain specified in the e-mail address that you configure in Central Administration. E.g. if you set the e-mail address domain for recieving SharePoint e-mail destined for Lists and Libraries to say sharepoint.somecompany.com (which would result in an e-mail address that could look like
somelist@sharepoint.somecompany.com for a list), then you will need to set the SMTP Service up to recognise that it is the endpoint for mail destined for this domain so that it moves the received mail into the Drop folder for SharePoint to pick up. Otherwise mail will sit in the Queue folder on the SMTP Service machine forever, as it won't know where to send it next. When SharePoint is in Automatic mode, it gets the folder to pick mail up from, from the SMTP Service, which by default tells it to look in C:\inetpub\mailroot\Drop.

To do this, on the Web Front End Server running the SMTP Service under IIS

* Go to Administrative Tools>Internet Information Services (IIS) 6.0 Manager (NOT the IIS 7.0 Manager which is listed as Internet Information services (IIS) Manager).
* Once the IIS 6.0 manager dialogue has opened, expand your server, and
then expand the SMTP Virtual Server node.
* You should see a node called Domains. right click on it and select New Domain...
* In the New SMTP Domain Wizard select Alias as the domain type and click the Next button.
* Enter the domain name exactly as entered in Step 4. of Configure DNS Manager (and as in Step 5 b. of Configure incoming e-mail settings)
* Click Finish.
If you have e-mails sitting in the Queue folder from previous tests, restart the SMTP Service and it will process them and park them in the Drop folder, ready for SharePoint's timer service to pick them up on it's next run.Assuming that you have got everything else set up properly, you should see messages landing in the Drop folder, and then being picked up by SharePoint for loading into the appropriate List or Library