Other thing to check is to see if it works with either of these scenarios:

a) SMTP Authentication setting set as anonymous

b) SMTP Authentiation settings set as basic (you will need username/password).

Also are you sure you are sending out newsletter emails? There is a know bug in earlier versions (maybe your version) whereby if you send them out in mode it says it works when in fact it hasn't happened. Try synchronous mode (or it could have been the other way around). Either way test you actually receive a newsletter sent to another domain by making sure you receive it. This might confuse the issue but could be a valid point.

I guess i am not making this clear. Newsletters email do go to out for sure. Every email account I have used to register in a attempt to test if the register email will go out got a news letter. So these are emails that are not on the godaddy server emails like hotmail, comcast, gmail, and yahoo. I can account for every user with a email address getting a news letter. None of them have got a new user email and most of those account as unvalidated.

So I dunno is there just some checkbox that says "send newuser emails" that i am missing cus i have been thru this thing 100 times or more.

Drew

Just so we are clear, you are successfully sending a newsletter while logged in as the portal administrator,  and not a *host* account?  If this is the case, the next step would be to look at your mail server logs for further diagnosis.

Brandon