Are you testing locally or remotely?
You should be testing remotely, in most cases, the local testing server will not have an smtp server installed.
Who is your Host?
What have you entered for the SMTP Server settings?
For the From address, you should use a static address that is a valid address for your hosting domain.
You can click the From button on the main Universal Email screen a=to access advanced from settings, here you can bind the Return address option to the from form element.