I tried what UCTservices suggested but still i have authentification failures... here is maillog output...
vchkpw-smtp: vpopmail user not found
admin@xxxxxxxx.com:79.xxx.xx.xxx <---This is the same user..as above
So pop3 works but smtp authentification doesn't..
Tried removing the rbl check form qmail.. no error regarding ip blacklisted is gone but still doesnt send...
PS: In my case "/etc/init.d/qmail start" works fine with no errors..