You do not configure ms exchange on the same machine as SQL Server. Just create a mail profile using your mapi compatible mail client application.
Log on the machine with the account you setup to run your services and create the mail profile and then configure SQL to use the profile for mail services.
How to set the mail profile for SQL Server Agent (Enterprise Manager)
To set the mail profile for SQL Server Agent
Expand a server group, and then expand a server.
Expand Management, right-click SQL Server Agent, and then click Properties.
Under Mail session, select a profile in the Mail profile box. If no profiles are listed, enter the name of the profile to use.
you can also use xp_sendmail. The information is in Books Online
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