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But I am still unable to ping smtp.kustomhosting.net, I am not sure what is wrong and I am also unable to access webmail.kustomhosting.net
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This is most likely adns problem and not related to email at all. Have you created dns A-Records for smtp.kustomhosting.net and webmail.kustomhosting.net that point to the IP address of your web server in the dns server that is authoritive for the zone kustomhosting.net
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And now my domains are going directly back to squirrelmail again, I disabled it again.
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The reason for that is that you mixed IP address based vhosts with wildcard vhosts in apache. If you create a IP based vhostlke the one that you created in the squirrelmail configuration file, then all other vhsost on your server have to be ip based to. So you have to select the IP address and not * in all sites that you create in ispconfig.