Moodle does not email students. I have been testing this by making test posts in a news forum to which I have subscribed several test users to. I make the new post and check the "Mail Now" option. When click on Post, it says "This post will be mailed out immediately to all forum subscribers."
I've tried several configurations for email. I searched this issue and it seems that moodle/lib/phpmailer/class.smtp.php needs to be edited to include the correct default port number, 26 (when using SMTP to send the mail). So, I went ahead and did that and put in the SMTP host in the email configuration (I tried localhost, localhost:26, mail.myserver.com, mail.myserver.com:26), the SMTP username and password as given in the mail client configuration page linked from cPanel for the address I made, and the no-reply address (which I registered as an account thru cPanel).
None of the above worked.
I ran across another posting in which it said that the default port number in moodle/lib/phpmailer/class.phpmailer.php has to be changed. So, I went ahead and did that - didn't work. I deleted the SMTP information that I put in the Email configuration page, so that it defaults to PHP mail - didn't work.
I'm sure that the SMTP server is working, as I am able to send and receive mail thru it both thru the online webmail system, as well as a pop/smtp client running on my computer (outlook express).
I'm running out of time, and patience to get this problem fixed. It's really frustrating.



