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Did they not supply you with name servers to use? The name servers need to be setup with the MX records pointing at your server.
An MX record is a DNS setting and is totally separate from the domain. What you need to do is specify the NS's to point at Go Daddy and log into Go Daddy and find the DNS manager and then set up your MX records there.
Thanks for the suggestions.
As usual, everything is very simple with GoDaddy.
Added my site for off-site DNS and registered it an hour later with co.za Admin accepting the registration.
I see they also automatically allow you to change DNS records for any domain that points to their nameserver, very nice.
I know this is off topic, but has anyone noticed that the co.za Domain Administration web site is down and has been for this whole weekend?