system log form

I wonder.... when it says:

"Form "contact" has been submitted by xx.xxx.xxx.201."

in system log, does this mean the contact form has been sent correctly? And when the message is not received by email it is probably stuck somewhere on the email server (junk mail) of the receipient?

Yes, it should be submitted. Also open system/logs/email.log and make a test with a friend or some address of your own.