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While waiting for your host response you may just try the SMTP plugin http://wordpress.org/extend/plugins/wp-mail-smtp/ to see if it works.

Aayeee. . .
just remove the two //
Don't change the code text

There's a mod in the forum about how to avoid posters from posting in the main cat !
conclusion : it may be possible by making a cat as a main cat (with no sub cat) using the mod (mentioned above)...