how do i get The Bat to work with local SMTP (using win7)

I don't understand how to get this thing to work. I have The Bat mail client and hMailServer on windows7.

I get this error message from the bat but have no idea what it means: "Server reports error. The response is: Unimplemented command."

If you dont know what I'm talking about, and you have the bat, what free smtp server do u use and how do u configure it? Or if you know of a tutorial somewhere.