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I can not test the test email function, but everything seams to be correct configured.
pls let me know.
I'm going to move this to support requests for now. Not sure about that error message, but perhaps if you want to email me more info on your email config I can help you out. there has been a comment in the past about trying to user certificates or something. There are some email services that iAlertU doesn't seem to cope with but a stock standard email address such as gmail or most typical accounts should work.