Have you set up the e-mail under Fax/Email | Email setup? Do the clients you are trying to e-mail to have addresses set up on their files?
It is a security issue. You need to give yourself the rights to that menu choice.
To prove this, log in as SYS (with the correct password), and you will see that the menu option is now available.
Did you try what I wrote about logging into Adagio with the user ID SYS? What happened?