Processing files sent to PickupDirectoryLocation

I’ve never used PickupDirectoryLocation in production before, just for testing. So, when I use PickupDirectoryLocation for storing emails to be sent what do I do after that to actually get the emails sent? Do I need an exchange server or will any mailserver do the job? I guess I just need a hint on how to begin in this scenario.

The IIS SmtpServer will pick it mails up from that Directory and send it. So all you need to do is setup IIS SMTP like you would normally

I see. Do you have to send the email files to a folder specified by IIS SMTP or does setting the folder in the code also alert IIS that there are files waiting in that location?

IIS will need to be configured to look there. IIRC the default is c:\inetpub\mailroot\pickup but it is pretty easily changed.