One more thing that I forgot to mention:

When we uncheck the option to include websafe, the application works properly and we do receive the email.

It is only when we include the websafe option, that is when we no longer receive the confirmation email.

(This is why this is so difficult for us to determine what is going on. The settings seem to be set correct. It appears that there is something preventing the emails only when we add the WebESafe option.)