Fetchmail works great as a daemon indeed. However, I think what he's saying is that because his MTA is started in /etc/inittab instead of somewhere else, it is coming up after Fetchmail gets going and thus, fetchmail can't deliver to port 25. I've never run a MTA from inittab, so I'm not all that sure how you'd go about changing things. Personally, I prefer to run fetchmail from my own login rather than as root.