@Drew, @Mal
please ignore message from application if You use Gmail and Hotmail accounts. Custom templates from Templates/blogs will be works with Your email soup, webs, jimdo, manifo etc. Prolem is with step templates like WPMS, wiki, pligg works with popclient and there is problem with gmail and hotmail accounts. Best options is use email from Yours domains in 110 port. Is possible works with gmail and hotmail accounts but then You need install
stunnel in config file just uncomment few lines with gmail.
@Mal - I think You use Zennoposter version 4.1.0.0 or lower - because then was bug with mail processing.