The Windows Azure environment itself does not currently provide a SMTP relay or mail relay service. So how do you send and receive email in your Windows Azure applications? Steve Marx puts together a great sample application (available for download here) that does the following:
Resources:
Azure SDK Download: http://bit.ly/zxazuresdk
Free Windows Azure Platform Trial Account: http://bit.ly/zxazuretrial
Windows Phone SDK Download: http://bit.ly/zxphonesdk
WebMatrix Download: http://bit.ly/zxwebmatrix