This post is the Second post out of Five that builds the TFS 2010 Alerts User Guide. See the first post: “TFS 2010 Alerts User Guide – Introduction”
On this post I will show how to set the mail server.
The first thing you will need to do in order to user the Alerts mechanism is to set an SMTP server that the TFS will use.
Follow these steps to set the SMTP:
Step 1: Log in to the Server with a user that has TFS Administration rights
Step 2: Launch the “Team Foundation Administration Console”

Step 3: Go to the “Application Tier”

Step 4: Click the “Alert Settings”

Step 5: Type your SMTP Server
Step 6: Type an Email address, you can type a fake email address it doesn’t need to be a real one. I usually use: TFSAdmin@DomainName.com

The result will be:

That is all, you are now ready to start using the Email Alerts.
Have Fun!!!