BuddyPress.org

I use Bluehost as well, and had similar problems… I tried just about everything, and the only thing I could do was use an SMTP plugin… This is the one I use: http://coffee2code.com/wp-plugins/configure-smtp/

Here are a couple things I learned, so you don’t have to bang your head as much as I did…

– use ‘localhost’ as the SMTP hostname in the config file
– Make SURE you are using an email address that is being hosted on Bluehost for the username/password

Good luck!