Hi John,
I was near to setting up qmail with both SMTP AUTH and TLS/SSL support for a customer using qmail .. before the servers' RAID controller died ;/ ... there are qmail distros/patches that will enabled the send process (can't remember the name of it now) to support TLS, which is a newer interface to SSL. Unfortunately, as far as I have seen, only Netscape email clients and I think Eudora support TLS ... that is a nice way to do things though because the MTA does the encryption.
You can also tunnel over SSL, do a search on "+qmail +SSL +tunnel" in Google and you should get a good list of places that will show you how to do that ...
It seems like more people do that ... and Outlook Express/Outlook support SSL encryption (as opposed to TLS) ...
The strange thing about doing it that way is that running SMTP over SSL (which would be on port 465) is NOW DEPRECATED. SHeesh! So you can use the newer way (TLS) and have unsupported clients or tunnel over SSL (deprecated) and support everyone. Bizarre.
Maybe I had misread things when I was figuring out how to set things up, but that is what I saw.
I was setting up SMTP AUTH over SSL .. I was doing things from source and it quickly became a pain ... patches conflicting with each other .. blah.
If I were to set that up again, I would use someone elses' pre-made RPM distro of qmail ... on the main qmail.org site you will see links to peoples' homebrewed distros .. patching the source was a pain and took a lot of time. I thought it would be fun to do it that way as it gave me opportunities to check out the source but ... it wasn't

.
I welcome any corrections to what I have said if anyone reading this sees that I have said something that is incorrect .. that install was my first experience with qmail.