Hi Byron, fantastic, it's perfect.
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Sending mail from local development console of AppEngine on a windows
machine is easy now.

You don't have to wait till Google will fix issues 626 and 1061.

You only need to install byron's windows sendmailer and AppEngine's
local server will be able to send mail with the sendmail option '--
enable_sendmail'.

Step by Step:

1.
Download byrons windows sendmailer from http://glob.com.au/sendmail/
Basis pack: http://www.glob.com.au/sendmail/sendmail.zip
plus for SSL/TLS with gmail
http://glob.com.au/sendmail/sendmail-SSL.zip

2.
Unpack and copy the files
sendmail.exe, sendmail.ini, libeay32.dll and ssleay32.dll
for exampte into the folder C:/code/sendmail

3.
Open sendmail.ini, fill in your following four mail data and save:
smtp_server=mail.arcor.de
auth_username=konradtest01
auth_password=secret
default_domain=arcor.de

4.
Include your new sendmail folder into windows search path eg:
Start/ControlPanel/System/Advanced/EnvironmentVariables
in SystemVariables scroll down to Path, click Edit
append the sendmail folder for example: ...;C:\code\sendmail
and restart your computer

5.
Start your Application Folder locally with the sendmail option '--
enable_sendmail'
../dev_appserver --enable_sendmail ../ApplicationFolder

see #Using_Mail in
http://code.google.com/appengine/docs/python/tools/devserver.html#Usi...

6.
Now you are able to use AppEngine mail locally by importing
    from google.appengine.api import mail
into your application for example with the sequence
    mailobj=mail.EmailMessage()
    mailobj.sender = 'Konradtes...@arcor.de'
    mailobj.to = 'Konradtes...@arcor.de'
    mailobj.subject='re My First Test'
    mailobj.body='Test massage No 1'
    mailobj.send()
You can download a working demo from
http://benchstat.appspot.com/fileHost/09/04/02/AppEngineMailDemo.zip

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Thank you Byron. Great work your sendmailer.