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Also having problems with email sending.
I have access to a SMTP server on another host and I have tested the connection by sending an email via telnet.
Same hostname/port is written in every setup.php (Pro/Paw) but no mails are ever sent.
Is there some PHP Email plugin I should install?
Have tracked the problem down to Zend/Mail.php where it chooses the method for Mail delivery. Its suppose to use their smtp transport ('Zend/Mail/Transport/Smtp.php') but it defaults to the class 'Zend/Mail/Transport/Sendmail.php'.
... And there we go, in global.conf there was a setting "smtp_use_sendmail_transport" that made Mail.php pick Sendmail instead, thuse disabling the SMTP settings.
Put that to a 0 and password-reset mail got sent.