Well i got it fixed by replacing admin@mydomain.com to admin in /etc/ejabberd/ejabberd.cfg
But i dont see nothing in that file that would use jabberadmins group.
I do see the group in files in
/etc/e-smith/templates/etc/ejabberd/ejabberd.cfg/00template_vars
and
/etc/e-smith/templates/etc/ejabberd/ejabberd.cfg/10AdminUsers
It would be nice if someone could clarify why are those settings missing from ejabberd.cfg ?
I removed and re-added Instant messaging.
Is it because i have not created the group prior to installing the Instant Messaging packages ?
I would also note that i could not login as admin@mydomain.com only as admin.
Something happened when i entered the right password for that user but i got no data back, i could point to /admin/logout then i get logged out 
strange