Here are fragments of my Config files:
InnovatorServerConfig:
<Mail SMTPServer="localhost"/>
<!-- <operating_parameter key="temp_folder" value="C:\inetpub\mailroot\Pickup\"/> -->
web.config Mail settings:
system.net>
<mailSettings>
<smtp deliveryMethod="Network" from="aras_admin@xxxx.com"> (Intentionally redacted, proper email address is in actual file)
<network defaultCredentials="false" host="127.0.0.1" password="" port="25" userName="" />
<specifiedPickupDirectory pickupDirectoryLocation="D:\Temp" />
</smtp>
</mailSettings>
</system.net>
</configuration>