Reese, Alonn,
Generally speaking the 1037 events are usually harmless. The text of the event is very misleading and has actually been removed altogether in later builds (post RTM).
Usually these events occur because a new PKI certificate has been installed on the server that has the FQDN of the computer listed in the CertificateDomains but the SMTP service is not enabled on it.
To rectify the 1037 event you can enable the SMTP Service on the PKI certificate. Unfortunately, creating a new self signed certificate will not help as long as a valid PKI certificate with the FQDN of the machine is installed. In cases where you might also be running NLB on the server, if you have a certificate installed that contains the NLB cluster name you will get the above event. Unfortunately there's no way around this event in those cases short of installing a new PKI certificate with the physical FQDN and SMTP service enabled.