Posting this problem again as I can't seem to find any definite answers to the problem. Email settings are exactly the same in new installation of Moodle 2.1 as they are in an older 1.9 installation. Email works fine in 1.9 but the following error is received in 2.1 (and emails not sent):
SMTP Error: Could not authenticate. ERROR: SMTP Error: Could not authenticate
Has anyone managed to solve the problem yet?
This is currently holding up our migration to the new version as without it our users will be unable to click to receive a new password (we have not been able to migrate passwords from 1.9 with users and are also having issues binding ldap settings).
Cheers for any help.
Llyw