First things first, I've got an Ubuntu 10.04 system set up on a linode, and I followed this guide on setting up mail
here.
The only thing I did different or extra from the guide was actually create a couple of users using adduser (and corrected some of the typos noted in the comments). Every test shows that mail works. From one of the user's accounts, I can use mailx and mutt to send email to a gmail account (which it gets). I send back an email from that gmail account to the user, and it gets received.
With mailx and mutt, I can see the emails received from gmail to that user (though for some reason I don't see the sent email? why not?).
With squirrelmail, I can send emails and view those -- but not any emails received. The INBOX is empty. Note that I did get an error when I first set up squirrelmail and tried to use the web interface, that the Sent folder couldn't be created. I tracked this down to a configuration within squirrelmail that the default folder prefix needed to be "INBOX." (with a period) and not empty (as is how it sets itself up if you choose dovecot). After that, there are no errors with squirrelmail -- but I can't see any received email in the inbox.
I really need to get a webmail interface up for the website owners. Can anyone give me some pointers? Maybe recommend another option?