jcr wrote:
(1) But, what is the "server name"?
Don't really understand the question. My version of Mail (3.6 - the current version) asks for Incoming Mail Server: (sounds like you have that set up OK) and Outgoing Mail Server (SMTP): - this need to be the name or IP address of an SMTP server.

jcr wrote:
(2) Can it be the default li103-217.members.linode.com?
Yes - but it needs to match the 'mydomain =' and 'myhostname =' directives in the postfix main.cf file.
jcr wrote:
(3) Do I have to rename that fully-qualified hostname?
Not necessarily - see (2).
jcr wrote:
(4) Assuming I own the domain example.com, could I user something like smtp.example.com? What kind of DNS entries should I make for that?
Yes.
Code:
smtp.example.com. 7200 IN A 97.107.142.217