i banged my head several times before i got the answer finally!!! and it is NOT i repeat not the re-install
(thats what i did TWICE!)
the problem is that the server doesnt support emails like gmail and hotmail for admins. my solution was
1-create a user on a your own domain , get the smtp details
2- get the plugin http://coffee2code.com/wp-plugins/configure-smtp/
3- install and setup
silly me i shouldve thought of it earlier , when this occurred 2 years back with my other blog http://www.aivault.com and the solution was the same… please dont uninstall!!.
i hope this will also help someone out there…
working fine now on ….. http://www.aifgraphics.com