Microsoft Sharepoint is a software platform and family of software products used for collaboration and web publishing combined. These capabilities include developing web sites, portals, intranets, content management systems, search engines, wikis, blogs, and other tools for business intelligence and collaboration. SharePoint has a Microsoft Office-like interface, and it is closely integrated with the Office suite.
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http://sharepointgeorge.com/2010/configuring-incoming-email-sharepoint-2010/
The real problem was that I did not have a Exchange connector installed and you must use the email format: SharePointList@SharePointS
For Example: contacts@sharepoint.mydoma
You have to have the name of the server in the address. This works for internal mail but if you want to send from an external address you can add an email forward from an email of your choice to the internal email address.
For example: contacts@mydomain.com forwards to -> contacts@mydomain.com