chroot and postfix with sasl question

[Wade Smart]

Very long story short, Im having trouble configuring postfix to work
and the postfix users list is a very hostile list for receiving help.

Fetchmail is getting my mail.
Postfix was delivering it to my Maildir but its not now.
When I try to send any mail I get a bounced message and now Im getting:
May  1 12:35:24 wadesmart postfix/smtp[26264]: D683A14284D1:
to=<wadesmart at gmail.com>,
relay=smtpout.secureserver.net[64.202.165.58]:3535,
delay=1.1,
delays=0.31/0.49/0.28/0,
dsn=4.7.0,
status=deferred (SASL authentication failed; cannot authenticate to
server smtpout.secureserver.net[64.202.165.58]: no mechanism
available)

Here is the postconf -n result:
wadesmart at wadesmart:~$ postconf mail_version
mail_version = 2.3.8

wadesmart at wadesmart:~$ postconf -n
alias_database = hash:/etc/aliases
alias_maps = hash:/etc/aliases
append_dot_mydomain = no
biff = no
config_directory = /etc/postfix
home_mailbox = Maildir/
inet_interfaces = all
inet_protocols = all
mailbox_command =
mailbox_size_limit = 0
mydestination = mail.wadesmart.com, wadesmart, wadesmart.com,
localhost.localdomain, localhost
mydomain = wadesmart.com
myhostname = mail.wadesmart.com
mynetworks = 192.168.0.0/24 127.0.0.0/8
recipient_delimiter = +
relayhost = [smtpout.secureserver.net]:3535
smtp_sasl_auth_enable = yes
smtp_sasl_password_maps = hash:/etc/postfix/saslpass
smtp_tls_session_cache_database = btree:${queue_directory}/smtp_scache
smtpd_banner = $myhostname ESMTP $mail_name (Ubuntu)
smtpd_recipient_restrictions = permit_mynetworks,
permit_sasl_authenticated, reject
smtpd_tls_cert_file = /etc/ssl/certs/ssl-cert-snakeoil.pem
smtpd_tls_key_file = /etc/ssl/private/ssl-cert-snakeoil.key
smtpd_tls_session_cache_database = btree:${queue_directory}/smtpd_scache
smtpd_use_tls = yes


What researching has found is that I need to not run chroot'ed. In the
main.cf file is a table:
# ==========================================================================
# service type   private unpriv  chroot  wakeup  maxproc command + args
#               (yes)   (yes)   (yes)   (never) (100)
# ==========================================================================
    smtp      inet        n       -               n        -
  -           smtpd

Does putting an n under chroot make it not chroot?