I am getting familiar with Amazons EC2. I installed a LAMP setup but when I try to send emails through the mail() function that I have in my pages it does not work. I checked and sendmail is running and is on the phpinfo page.
I have tried changing the php.ini sendmail_from and it does nothing. SMTP port is open on the firewall... im freakin lost..
This won't directly solve your issue (edit: I mean the error message you have now edited out), but Amazon EC2 instances have a really spotty mail reputation. You're probably going to have deliverability issues.
Thankfully Amazon created the Simple Email Service to go along with EC2, with a free level of service for EC2 customers. The API is pretty simple and there are transport adapters for many excellent PHP mailing libraries, like SwiftMailer (transport).
Sending emails works fine from EC2, but it has to be unlocked by Amazon support first:
http://aws.amazon.com/contact-us/ec2-email-limit-request/
Please install sendmail extension, I solved this issue just by installing sendmail in my instance.
Just type: sudo apt-get install sendmail
in your terminal.
That worked for me