Thanks.  Yes firmware 1.01 and Build 1522.
For Motion Detection, I have check "Enable Video Motion" and have a zone un red to define the zone to detect motion.  Sensitivity at 85%.  
WITHOUT changing those settings, I can record to the SD card without problem BUT neither Snapshot nor Video will send emails even when motion is detected EVEN THOUGH the test are always successful (and I receive the test emails right away).  
I use GMAIL and port 587 with STARTTLS.  I have also tried with my Hotmail account.  
Also, whenever I test it, the motion icon in LIVEVIEW lights up to show that motion is detected but no emails will go out
I've been using DCS cameras for a while but can't figure out this one...