Closing the loop: I had in fact configured the local smtp host and GD was working. When forum posts didn't get emailed, I mistakenly concluded that I needed to run mail services on the same machine as moodle. I spoke with my IT support person and found out what the problem was on the mail system. It is now working and I am getting ready to invite several colleagues to check out my installation of moodle and see what we can accomplish educationally.
Thanks,
Marian
Installing and upgrading help
"Server" requirements for Mac OS X 10.2x
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