Are you sure this works when not on GAE -- looks like there are some 
problems even in that case? More below...

def mailid():
>
>         #import Mail
>         from gluon.tools import Mail
>         mail=Mail()
>
No need to instantiate mail with Mail() if you are going to use 
auth.settings.mailer (below) -- auth.settings.mailer is already a Mail() 
object. Also, if you need to use mail anywhere else, you might move the 
mail configuration code to a model file so you don't have to repeat it when 
needed elsewhere.
 

>         #specify server
>         mail=auth.settings.mailer
>         mail.settings.server='GAE'#'smtp.gmail.com:587'
>
Try 'gae' (lowercase) instead of 'GAE'.
 

>         mail.settings.login='[email protected]:pwd'
>         #specify address to send as
>         mail.settings.sender=request.vars.email
>
The sender is the account that is sending the email, which should be your 
own account, not the account of the person submitting the form (you cannot 
send email from their account). If you want to be able to reply to the 
user, you can specify their email as the 'reply-to' parameter:

mail.send(..., reply_to=request.vars.email).

        #send the message
>         msg = request.vars.name,
> request.vars.email,request.vars.contact
>
What is msg -- you don't appear to use it?
 
Anthony 

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