Tiffany, you have been getting some great advice from the other folks, but somehow, it seems to me that this is becoming more difficult than it should be. I just tested my Bluehost Moodle 2.5.1+ install, and it is sending out emails. I didn't really have to do much, either. If it makes sense to you, let's start again with some simple information.
1) You have a standard Bluehost hosted server account, right?
2) Exactly, how did you install Moodle? Did you use the one button install, or did you install it yourself from scratch?
3) Do you really not have a "moodle" folder? Did you really tell moodle during it's install that you did not want the default "moodle" folder, and used "courses" instead?
4) Have you asked Bluehost why your emails are not working? I think that Bluehost claims to know something about Moodle. They might have a simple solution for you.
After I got my (free) Bluehost account, I was able to get Moodle up an running, including cron, in less than 30 minutes. So I am puzzled why you are struggling with these cron entries. (By the way, the one that I posted to you is what I am using right now, and it works.)
I really appreciate the extra knowledge of Ken and Guillermo, they are really great. I am learning a lot just by following this discussion.
Maybe I can make a video showing how I installed my Moodle on Bluehost, but I need to know the answers to the above questions.
Below is a screen shot showing that I really did get an email. My cron job is set to run every hour at 38 minutes.