At last after a lot of googling, OE Forum posts and the help frm there and generally trial-and error methods I have been able to get this seemingly simple thing up and running.
So for those who are trying to figure out the steps in details (that was what was missing from the posts here - no particulars)...
1) Install Stunnel from the ipk available (at Killefiz for example)
2) Since this installation doesn't seem to create a Stunnel directory and the corresponding stunnel.conf file anywhere create it manually
a) create /etc/stunnel directory
create stunnel.conf file inisde the /etc/stunnel directory (use VI and QZed)
the stunnel.conf file contents as I have it now...
client = yes
# Configure the secured POP3 services
accept = 127.0.0.1:110
3) Edit the /etc/inietd.conf file and add a line to enable pop thru stunnel
pop3 stream tcp nowait root /usr/sbin/tcpd /usr/sbin/stunnel /etc/stunnel/stunnel.conf -r pop.gmail.com:995 -c
This is to make the tcpd service accept and connect thru stunnel (located in /usr/sbin) and make stunnel use the stunnel.conf file in /etc/stunnel with switches -r -c (maybe this is redundandant since the connect IP and port is already defined in stunnel.conf. I havent yet tried it without the -r switch.
After making the change to inetd.conf file restart the inetd service from the terminal
> killall -hup inetd
4) Setup the gmail account in QtMail
The Incoming details are as
Choose account type : POP3
Username : email@example.com
Password : ******** (use your password here)
Server : 127.0.0.1
Port : 110
Now after connecting , and starting QtMail, I am able to receive all my Gmail emails on my Zaurus as pop mail.
Note : Gmail must already be configued to have POP mail service enabled (go to settings in Gmail)
I still haven't tried the outgoing mail using the smtp.gmail.com server at port 465, but at least I have incoming working.
Thanks to all who helped in the forums and at least gave helpful pointers.
Hope this helps and please correct me anyone if I am using redundant switches or settings anywhere...
EDIT : I need to add that on the default Sharp ROM, you also need to install openssl for stunnel to work. Thanks to a much later post by inode0, I remembered that openssl is also a requirement. Since I had it installed already from previously, I missed that. Thanks to inode0 for the helpful pointer.