Hi Matt,
I am not sure which email server you are using, but some email servers (eg. Gmail, Yahoo) might not allow you to send emails using their server through unencrypted protocol. I believe this is the problem you are having. So, what you will need to do is in Method go to:
Customize > My Account > Change My Account Preferences > User Password Preferences (view / edit...) > Default Email Preferences (view / edit...)
There you will see a radio button SSL. Switch it to "Yes" and save your settings. Unfortunately it will still not fix your problem, since on our side, in the code we still haven't yet implemented a support for SSL protocol. However, I can assure you, it will be available within next few days. We will notify you, as soon as it is ready.
Thank you
Victor