Although it's easy to use a packet sniffer to read email traffic, it's not so easy to get a packet sniffer into a place where it can be used to do that. The system administrators at your ISP could do it, but I couldn't.
You can check whether your ISP supports SMTP AUTH/TLS and if they do you can use the howto at
http://www.linuxquestions.org/linux/...MTP_AUTH_Howto to configure your mail setup. I used it here and only had to change a couple of things for my system. My ISP doesn't use encryption, but my wireless clients here do.
You could also use PKI technology to encrypt your mail before it leaves your PC. Have a look at PGP or GPG (
http://www.gnupg.org/) and EnigMail (
http://enigmail.mozdev.org/) if you use Thunderbird/Mozilla.