A. You can find out more about the communication problems that exist between the File System Resource Manager and Exchange in the Microsoft article "The File Server Resource Manager on a Windows Server 2003 R2-based computer does not send e-mail notifications to the SMTP server" ( http://support.microsoft.com/kb/914678/en-us ). A hotfix exists, but you can work around the problem by simply turning off basic authentication on the SMTP virtual server. The procedure is described in the article.