Is there something else that I am missing?
Possibly. There are two email addresses that can be used - the board-wide email address, and the registration-only email address. Both are in the email area. Make sure both contain valid addresses. I'll wager that the registration one is invalid, and mails aren't getting sent from the server.
As for the style issue... hm, that's odd. Check the style association settings to make sure that each forum is using its assigned template for transition pages as well - there'll be checkbox for that option near the style set dropdown menu...