DO you have access to your mailserver logs so you can see if anything is being sent out? Have you tried sending a temporary password for your own account? Some basic troubleshooting will help with this. It could be something as simple as it's being caught in the user's spam folder.
I dont have access to mailserver log, and I did try to sent passwords to my own account. However, I found it did worked with english language files, but not the danish files. I'd checked mailer.php language file and put in some spaces around the %%variables%%, then it worked again
So far so good.
The program doesnt send any email when hit the 'send password' button in 'member mangement', it only sends email when using the 'forget password' link on the loginpage.