I have found the fix for this so you guys may want to include it in your code:
change the following line in admin_config_email.asp for v3.1sr5a7
from:
<option value="<% =theComponentValue(i) %>"<% if (lcase(strMailMode)="'" & theComponentValue(i) & "'" or lcase(MailMode)="'" & theComponentValue(i) & "'") then Response.Write(" selected") %>><% =theComponentName(i) %></option>
to:
<option value="<% =theComponentValue(i) %>"<% if ((lcase(strMailMode)= lcase(theComponentValue(i))) or (lcase(MailMode)= lcase(theComponentValue(i)))) then Response.Write(" selected") %>><% =theComponentName(i)%></option>
KatsKorner