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Is it suppose to work with the contact form out of the box?

The Banshee e-mail module is to send internal messages. Messages send via that module stay inside that module. No real e-mails are being send.

The contact form sends a normal e-mail to the address specified in the Settings administration page.

That is when you run your own mailserver?

Not per se your own, but the server Hiawatha is running on needs to be able to send an e-mail.

Ssmtp should do the job than?

Sure, configure it in php.ini and you're done.

Thanks, Hugo.