I am having the same problem. Also with Bluehost and initially I had a problem with activation e-mails. Nothing was sent and the new user could not activate the account as there were no e-mail of notification. Then I was advised to set up an e-mail account with them and still the problem persisted. After that I had install the Configure SMTP plugin which solved the activation e-mail problem only. Still there are no e-mails/notifications being sent sitewide. Can not figure out what I should do.
Can you tell me if you installed any additional plugin for this at all? How did you set up an e-mail address from Bluehost. Before I set an e-mail address and started using the Configure SMTP plugin, the general @box…bluhost.com e-mail was used which apparently was the default address.
Please share with us what you have done with bluehost.
thanks in advance.