When a user composes an email from their Activity Feed and hits send, it appears to send the email.  The other user gets the email inside of the portal, but no mail is being delivered to the user's external email account (as it should).  We have tried this on multiple installations and it appears to be a bug in the current build (7.00.0.1).  The scheduled task that sends mail externally says that it is running, but no messages are being sent.

Anyone else experiencing this?

Great catch, Jason.  That did the trick for me.

I upgraded to 7.00.02 (which didn't fix it at first)

Next, based on the link you sent me, I went into Scheduler, deleted the Message Dispatch job (after taking a screenshot to remeber the settings).  Then I simply created a new Message Dispatch job pointing to the job type: DotNetNuke.Services.Social.Messaging.Scheduler.CoreMessagingScheduler, DotNetNuke

Thanks so much for pointing me in the right direction!

I was actually trying to figure out how you even caught it in the first place.  That's some impressive sleuthing!  ;-)