You don't say what OS your server is running, this might be helpful. So as an initial thought, check the folder where Mailit is suposed to be storing the log file and be sure that the user that writes the log file has access to the folder. If this is a windows server in Active directory, this may complicate the permissions setup. You may have to get the user information from Mailit or work with your server admin to check this.
That's a great point Bruce I am running windows server and out IT guy has everything so locked down I have had problems being able to do things before so I will check that. Bruce have you worked with Dacons products before? If so I may have a few more questions for you.