Ok, things are up and running again, but not what I expected so hopefully this will help someone.
I am back on the latest firmware 1.02.05
I had my event email setup to email my icloud.com address this worked for the longest time, but doesn't seem to work on the new firmware, or icloud.com is somehow blocking emails with pictures. I checked the spam folder etc and there was nothing there either.
When I setup as the icloud.com address to send TO, I would do the test and I WOULD get the notification, but I would never get the motion event emailed to me (It showed in the log that motion was detected).
I changed the address to a gmail.com account and it worked! I now we motion detection emails with pictures.