Trouble with mail function

I have 2 problems:
1).
On my development site when I attempt to send an email I get the following error:
Warning: mail() [function.mail]: Failed to connect to mailserver at “localhost:2372” port 25, verify your “SMTP” and “smtp_port” setting in php.ini or use ini_set() in C:\wamp\www\wordpress\wp-content\plugins\BVD Plugin\index.php on line 814.

I have changed the SMTP server to one that I know works but the system ignores it and still uses the localhost. Does it not access the index.php file?

2).
I use another site on hotjava.org and I do not get the error. However I do not recieve a simple email. The code is:
$to = $row[‘UserEmail’];
$subject = “User Name and Password”;
$message = “Your WordPress BVD User Name is: “. $un . “\nYour WordPress BVD User Password is: ” . $up . “\n”;
$message = wordwrap($message, 70);
$from = “[email protected]”;
mail($to,$subject,$message,$headers);

Any ideas?
Thanks in advance.
Bill
[email protected]