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Ton install the incoming e-mail settings for SharePoint 2010 you will need to first install the SMTP services on any of the attached Farm servers.

• Install the SMTP Services
  • Open the Server Manager > Features > Select SMTP Server and Add Required Role Services

  

• Open Central Administration > System Settings > Configure incoming e-mail settings
• Select Yes for the Enable Incoming E-mail
  • Select the Automatic Settings mode: for the best out of the box support for your requirements, otherwise you can select the advanced mode and specify the drop folder for e-mail if not using the SMTP services
  • Select Yes for the Directory Management Service
    • This process will require rights to an Active Directory Organization Unit where e-mail distributions groups will be created by SharePoint services (give the farm service account Read/Write access to the OU – see image)

  

  • Add the location to the OU where SharePoint will create distribution list objects
    • For example
      • OU=SharePoint Distribution Groups,OU=Exchange_Groups,OU=XXXXX,DC=XXXX,DC=NET
        • The bold letter indicate the names of the OU's I created previous to this step in Active Directory

  

• Alternatively in the Advanced mode you will need to specify the E-mail drop folder: location on the physical server with the SMTP service installed
  • In this scenario I have an E: data volume where I save this

  

This is a screen capture of the previous settings