Well the problem is solved, and I am putting this hear just in case somebody searches for it (and it isn't deleted). All I had to do was edit /var/qmail/control/rcpthosts (the location may be different for your setup) to include the yahoo.com domain for relaying, this is because the reply address I have set on openacs is my email address at yahoo... Since I am behind a firewall and am only using this machine for testing/internal use I don't need to worry about other people relaying through it and the security implications that would apply. If you are on the open internet you may need to be more careful... allowing all of yahoo.com to relay could theoretically produces a lot of spam.
Thanks a lot for the help.
