Rick were using ubbt 6.2.3.
The first option at the top of the special/misc settings is for the admin.log file location. I can't see any settings to do with e-mail, that is why I was wondering if it was the php.ini that may be wrong or some other script that sends the mail.
P.S. I realise I'm getting quite a lot of free support through these forums which I'm very greatful for. We do actually have a support contract with you I understand but I'm trying to get the serial no's etc. from the old administrator (the guy who setup our forums).