You need to configure SharePoint's email settings. Check here for full instructions:
http://technet.microsoft.com/en-us/library/cc288949.aspx
Specifically, you'll want to:
Configure outgoing e-mail for a farm
You can configure outgoing e-mail for a farm by using the SharePoint Central Administration Web site or by using the Stsadm command-line tool. Use the following procedures to configure outgoing e-mail. After you complete the procedures, end users can track
changes and updates to individual site collections. In addition, site administrators can, for example, receive notices when users request access to a site.
To configure outgoing e-mail for a farm by using Central Administration
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Verify that you have the following administrative credentials: You must be a member of the Farm Administrators group on the computer that is running the SharePoint Central Administration Web site.
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In Central Administration, click System Settings.
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On the System Settings page, in the E-Mail and Text Messages (SMS) section, click Configure outgoing e-mail settings.
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On the Outgoing E-Mail Settings page, in the Mail Settings section, type the SMTP server name for outgoing e-mail (for example, mail.example.com) in the Outbound SMTP server box.
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In the From address box, type the e-mail address as you want it to be displayed to e-mail recipients.
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In the Reply-to address box, type the e-mail address to which you want e-mail recipients to reply.
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In the Character set list, select the character set that is appropriate for your language.
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Click OK.
Configure outgoing e-mail for a specific Web application
You can configure outgoing e-mail for a specific Web application by using the Central Administration Web site or by using the Stsadm command-line tool. Use the following procedures to configure outgoing e-mail. After you complete the procedures, end users
can track changes and updates to individual site collections. In addition, site administrators can, for example, receive notices when users request access to a site.
Note:
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If you want to configure outgoing e-mail for a specific Web application, you must first configure the default outgoing e-mail for all Web applications in the farm. If you configure the outgoing e-mail for a specific Web application, that configuration will
override the default configuration for all Web applications in the farm.
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