From original poster:

I fixed the above problem with a little more research and a quick call to my shared hosting site, GoDaddy.

For future benefit to all GoDaddy users, here goes:

(1) The account admin@yourdomain.com must be set up and exist.
(2) That account, admin@yourdomain.com , must be turned on for SMTP relay. You get 250 relays per day.
(3) Be sure to activate SMTP relay for the account, and your SMTP server is relay-hosting.secureserver.net
(4) If you are using GoDaddy's auto install of DNN, ignore the OTHER server name which GD provides you with when you activate SMTP Relay.
(5) In your DNN, when logged in as host, for Host Settings the host email must be admin@yourdomain.com -- so if on GoDaddy make sure admin@yourdomain.com is your SMTP relay email account (and not info@yourdomain.com or anything else)

The following are search keys for Google: verification email GoDaddy how send verification email register verified email

Personally, I have found GoDaddy to be a fine host for my DNN 4 site. Like you, I did a lot of investigation before deciding to place a DNN interface on my GoDaddy site. I found that there are workarounds for all the common complaints. For instance, I have always had access to the root installation folder using a very simple ASP 2.0 workaround. The use of skins has never been a problem. On the two occasions that I needed to call GoDaddy, their tech support answered within seconds, and in both cases the person on the other end of the line actually knew what they were talking about. I do not know if this was luck or if that is to be expected. The only complaint I would have regarding GoDaddy is their documentation specific to DNN users, but my research and investigations easily circumvented any outdated or incorrect information in that documentation.

I plan to make a static page of tips at my web site, regarding DNN and GoDaddy, highlighting the little things I have learned along the way.

The primary reason I was drawn to GoDaddy is because of price. Over a 24-month period, it costs me $6.57/per month to have three (3) privately registered domains, with their shared hosting Deluxe plan on one of those domains. The includes more than enough storage (50GB) than I'll ever use, and the ability to run my DNN interface flawlessly.