There was a bug in 1.0.0 that prevented e-mails on replies - I recommend you download 1.1.0 (which is only waiting on one Javascript issue with the editor before release - hopefully tomorrow). If it still isn't working then, let us know and we'll see what's going on.

Also, if no e-mails are being sent whatsoever (E-mail on receiving a private message works properly in 1.0.0) it could be a problem with your mail settings.

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Jason Rhinelander
Gossamer Threads
jason@gossamer-threads.com