Where do you setup the POP3 email address? I looked in the config file and there's nothing there. I entered it in the Options > Writing section but is there somewhere else it needs to be?
When someone tries to request a lost login they get this instead on submit:
The e-mail could not be sent.
Possible reason: your host may have disabled the mail() function...
As far as I know, my host hasn't disabled anything and the POP3 email works fine.