Add site not working – subdirectory

3.0.11 – Subdirectory setup
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What does everyone use for mail, is it anything else required to be installed on the server, or can WP handle the emails, just you need to set an email account with it? (if so where)

At the moment email isn’t get sent anywhere – would that be why when i hit a new site and send, the /subdirectory/ isn’t getting made?

Example:

on blogs.spc.ox.ac.uk i login and make blogs.spc.ox.ac.uk/matt and nothing is there, and no email is sent to the address, is one problem linked to the other?