The problem was that the proposed script demands a user authentication but since the server does not require it, the whole script was unnecessary in that form. NO AUTHENTICATION IS REQUIRED FOR LOCAL EMAIL SUBMISSIONS.

In my opinion the example in the settings.php is just that an example of how to set the correct settings for your specific smtp server.

There are links to the documentation which should help you to figure out which settings are necessary for your case.

If you think this could be better documented please let us know how we can do that.

@Peter Jaramillo

https://elgg.org/discussion/view/3300132/laminasmailprotocolexceptionruntimeexception-error

https://elgg.org/discussion/view/3050485/emails-not-being-sent

https://elgg.org/discussion/view/3060652/php-can-send-email-but-elgg-site-cannot
https://elgg.org/discussion/view/2952483/php-mailer-its-not-working-reflecting-error

I must admit, it was a nightmare to make it work but I don;t give up very easily.

The First few discrepancies were found in the Rewrite Rules on the htaccess file. Apparently, Microsoft IIS Rewrite Rules work differently than Apache Rules. So, without these changes it will crash forever. Send me an email to pedro@daprose.com CC: radiojamon@gmail.com and I will send you the list of changes. 

Another discrepancy was in the installation module while creating the data directory. I had change the installation module as well to avoid the error message on the data folder created as a subdirectory of the same application.  I also noticed that the security settings for that folder crashed completelly and it has to be reviewed completely. For some reason it is not working as all other web applications but instead I had to authorize ALL USERS to modify that folder, that was the only way to make it work.  It shouldn't work that way but for the time being it is working until I find a way out of that problem. I will let you know.

Test site is running on my laptop only when connected to the internet at http://99.72.187.43/elgg  once I finish I will move it to a full server with all services on it of course.