Update:

I am now able to send email through my rainloop webmail account...

To do this, I removed postfix from chroot and set the saslauthd to Default. Now my only problem is receiving email.

still can't receimails...
I can't connect to mydomain at port 25 through telnet (connect failed)

this is the output of my netstat -plntu command

http://pastebin.com/XiXDJ6bX

my postfix main conf

GNU nano 2.2.6 File: /etc/postfix/main.cf

# See /usr/share/postfix/main.cf.dist for a commented, more complete version


# Debian specific: Specifying a file name will cause the first
# line of that file to be used as the name. The Debian default
# is /etc/mailname.
#myorigin = /etc/mailname

smtpd_banner = $myhostname ESMTP $mail_name (Ubuntu)
biff = no

# appending .domain is the MUA's job.
append_dot_mydomain = no

# Uncomment the next line to generate "delayed mail" warnings
#delay_warning_time = 4h

readme_directory = no

# TLS parameters
smtpd_tls_cert_file = /etc/ssl/certs/smtpd.crt
smtpd_tls_key_file = /etc/ssl/private/smtpd.key
smtpd_use_tls=yes
smtpd_tls_session_cache_database = btree:${data_directory}/smtpd_scache
smtp_tls_session_cache_database = btree:${data_directory}/smtp_scache

# See /usr/share/doc/postfix/TLS_README.gz in the postfix-doc package for
# information on enabling SSL in the smtp client.

myhostname = leoadhemartan.com
alias_maps = hash:/etc/aliases
alias_database = hash:/etc/aliases
myorigin = /etc/mailname
mydestination = leoadhemartan.com, localhost, localhost.localdomain, localhost
relayhost =
mynetworks = 127.0.0.0/8 [::ffff:127.0.0.0]/104 [::1]/128
mailbox_command =
mailbox_size_limit = 0
recipient_delimiter = +
inet_interfaces = all
inet_interfaces = $myhostname
inet_interfaces = $myhostname, localhost
inet_protocols = all
home_mailbox = Maildir/
smtpd_sasl_local_domain = leoadhemartan.com
smtpd_sasl_auth_enable = yes
smtpd_sasl_security_options = noanonymous
broken_sasl_auth_clients = yes
smtpd_recipient_restrictions = permit_mynetworks permit_sasl_authenticated reject_unauth_destination reject_sender_login_mismatch
smtp_tls_security_level = may
smtpd_tls_security_level = may
smtpd_tls_auth_only = no
smtp_tls_note_starttls_offer = yes
smtpd_tls_CAfile = /etc/ssl/certs/cacert.pem
smtpd_tls_loglevel = 1
smtpd_tls_received_header = yes
smtpd_tls_session_cache_timeout = 3600s
tls_random_source = dev:/dev/urandom
# DKIM
milter_default_action = accept
milter_protocol = 2
smtpd_milters = inet:localhost:8891
non_smtpd_milters = inet:localhost:8891

UPDATE:

Finally figured out the problem....

It was an IPtables Rules conflict.

I flushed the iptables and redid all the rules to allow smtp, imap, pop3 and icmp traffic.

I had no idea why I had these iptable rules in the firstplace. I never configured it. I had another droplet and it did not have the same rules.