Email validation sends out an email to the new email address to confirm that it is a working address. When the email address is validated, the forum will update the members profile with the new address. Until the email is validated, the old email address remains.
I guess that would indicate that I have the e-mail server address incorrect. Is that setting looking for the SMTP address? Or would it be easier to just use CDONTS?
What email component do you have selected? What other email components do you see listed? You could try the other email components if one doesn't work. And use the "Send Topic to a Friend" feature to test if it works.
Also check with your host on the correct address and email component to use.