Sorry I cannot explain really how this problem was fixed. I hired a friend to do it and all was good after that.
All I can say is what i did. I removed exim with dpkg --purge --force- exim
Danger!! This removed exim but it also removed my dpkg, samba, apache and a few more; which from that point I was beat.
My friend went to apt-get.org and read up on how to install dpkg and an hour later all was good again.