Making progress...
Printed out the Linux sm.ini and made the following changes:
mailbox_path "/var/surgemail/domain/
g_authent_process "/usr/local/surgemail/nwauth.exe -path 
/usr/local/surgemail"
g_home "/usr/local/surgemail"
g_mailbox_path "/var/surgemail/mbox/"
g_mfilter_file "/usr/local/surgemail/mfilter.rul"
g_webmail_workarea "/usr/local/surgemail/web_work"
g_work "/usr/local/surgemail/work"

Any I am missing?

But where do I direct the
vdomain : webmail_workarea "d:\surgemail\web_work"


Thanks