Not working: E-mail me whenever anyone posts a comment

Hi everyone,
I have set up another blog that is working fine, however the e-mail notification does not work if anyone posts a comment (option is activated under WP admin > Options > Discussion > E-mail me whenever anyone posts a comment).
Using latest WP version 2.0.4.
It is however not a webserver related issue since user registration works and these e-mails are being sent successfully by the server.

Might be important to mention: Normally, a new WordPress user “admin” is being created when you install the blog. I have deleted this user (ID: 1) and created a new user (ID: 2) with a different name (but also role ‘Administrator’).

Any help would be appreciated.

Thanks,
Michael

P.S. Plugins installed/activated: Akismet