When I send a message to blueyonder the system says the message has been sent yet the recipient cannot find it in his emails or on the server.

I compose a message and press send. The system states that it connecting and then that the message has been sent. When the recipient looks for the message on his system and/or the server he cannot find the message. I have sent him messages direct from my server and also Outlook Express and he does get them it is only when using Thunderbird do the messages go missing. Do I have to use special settings to send messages to Blueyonder?

I'd suggest you contact your email provider. Similar problems have been reported from Virgin users.
http://community.virginmedia.com/t5/Other-Queries/Emails-to-blueyonder-users-not-being-received/td-p/1813248

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