Email MAY be working right now. I'm sending PM's to the next few people I see on. Let me know if you get an email notification.
Edit: I've got one confirmation that users are receiving email. CBDennis, I sent you a PM as well, let me know if you got an email on it.
Edit 2: Everyone I sent PM's to have confirmed they got an email, so it appears to be fixed. If you have receive a PM that was sent after 12/30/10 and do NOT receive an email notification, please let me know.