Here is what I've done so far

Followed this http://library.linode.com/email/postfix/dovecot-mysql-ubuntu-10.04-lucid
installed clamav, clamav daemon, spamassasin, amavis

At this point, i can receive email without a problem. Half the battle!

But, any email sent from squirrelmail doesn't get sent.
the message in mail.log is:

May 20 13:41:45 li288-183 postfix/error[25381]: 85549A98E: to=<me@domain.net>, relay=none, delay=34200, delays=34200/0.02/0/0, dsn=4.3.0, status=deferred (mail transport unavailable)

Any one have any ideas what could be causing this?

what's the contents of your /etc/postfix/main.cf

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#####################################
# See /usr/share/postfix/main.cf.dist for a commented, more complete version


# Debian specific: Specifying a file name will cause the first
# line of that file to be used as the name. The Debian default
# is /etc/mailname.
#myorigin = /etc/mailname

smtpd_banner = $myhostname ESMTP $mail_name (Ubuntu)
biff = no

# appending .domain is the MUA's job.
append_dot_mydomain = no

# Uncomment the next line to generate "delayed mail" warnings
#delay_warning_time = 4h

readme_directory = /usr/share/doc/postfix

# TLS parameters
smtpd_tls_cert_file = /etc/postfix/smtpd.cert
smtpd_tls_key_file = /etc/postfix/smtpd.key
smtpd_use_tls = yes
smtpd_tls_session_cache_database = btree:${data_directory}/smtpd_scache
smtp_tls_session_cache_database = btree:${data_directory}/smtp_scache

# See /usr/share/doc/postfix/TLS_README.gz in the postfix-doc package for
# information on enabling SSL in the smtp client.

myhostname = hydrogen.example.com
alias_maps = hash:/etc/aliases
alias_database = hash:/etc/aliases
myorigin = /etc/mailname
mydestination = my.example.com, localhost, localhost.localdomain
relayhost =
mynetworks = 127.0.0.0/8
mailbox_size_limit = 0
recipient_delimiter = +
inet_interfaces = all
html_directory = /usr/share/doc/postfix/html
virtual_alias_domains =
virtual_alias_maps = proxy:mysql:/etc/postfix/mysql-virtual_forwardings.cf, mysql:/etc/postfix/mysql-virtual_email2email.cf
virtual_mailbox_domains = proxy:mysql:/etc/postfix/mysql-virtual_domains.cf
virtual_mailbox_maps = proxy:mysql:/etc/postfix/mysql-virtual_mailboxes.cf
virtual_mailbox_base = /home/vmail
virtual_uid_maps = static:5000
virtual_gid_maps = static:5000
smtpd_sasl_auth_enable = yes
broken_sasl_auth_clients = yes
smtpd_sasl_authenticated_header = yes
smtpd_recipient_restrictions = permit_mynetworks, permit_sasl_authenticated, reject_unauth_destination
smtpd_tls_security_level = may
transport_maps = proxy:mysql:/etc/postfix/mysql-virtual_transports.cf
relay_domains = mysql:/etc/postfix/mysql-virtual_relaydomains.cf
relay_recipient_maps = mysql:/etc/postfix/mysql-virtual_relayrecipientmaps.cf
virtual_create_maildirsize = yes
virtual_maildir_extended = yes
virtual_mailbox_limit_maps = proxy:mysql:/etc/postfix/mysql-virtual_mailbox_limit_maps.cf
virtual_mailbox_limit_override = yes
virtual_maildir_limit_message = "The user you are trying to reach is over quota."
virtual_overquota_bounce = yes
proxy_read_maps = $local_recipient_maps $mydestination $virtual_alias_maps $virtual_alias_domains $virtual_mailbox_maps $virtual_mailbox_domains $relay_recipient_maps $relay_domains $canonical_maps $sender_canonical_maps $recipient_canon
smtpd_sender_restrictions = check_sender_access mysql:/etc/postfix/mysql-virtual_sender.cf
smtpd_client_restrictions = check_client_access mysql:/etc/postfix/mysql-virtual_client.cf
maildrop_destination_concurrency_limit = 1
maildrop_destination_recipient_limit = 1
virtual_transport = dovecot
header_checks = regexp:/etc/postfix/header_checks
mime_header_checks = regexp:/etc/postfix/mime_header_checks
nested_header_checks = regexp:/etc/postfix/nested_header_checks
body_checks = regexp:/etc/postfix/body_checks
content_filter = amavis:[127.0.0.1]:10024
receive_override_options = no_address_mappings
message_size_limit = 30720000
dovecot_destination_recipient_limit = 1