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Wasn't sure what was cuasing the problem until I found this link: http://drupal.org/node/356959
I ran the query shown in #4 on my database and it returned "email_verify" as the problem. Under type I get: "email_verify" and under message it shows: "Email verify has tried contacting the mail host but did not receive a reply. Check with your hosting provider that the function fsockopen() is properly configured on your server, and that port 25 is open. The module has been disabled."
I understand I need fsockopen for the module to work but if that's not available I don't think the module should cause log errors.
Also, and maybe I should open another issue for this, my host (Dreamhost) does't allow fsockopen for security reasons and suggests using curl. Is that a possibility for this module? Otherwise I can't use it.