I am not sure I follow. where are you when entering the “created email address?” When I go to the “writing” section under WP settings, the only email fields are as follows:
Mail Server, Port
Login Name
Password
Default Mail Category
What did I do. I can’t remember. Oh yeah, I installed a different plug-in called “Email Post Activation.” Now my posts get uploaded into the Posts section of WP Dashboard for my site. I go in and approve the post and it shows up. I think if you add another plugin called wp-cron, I may be able to get it to post automatically without having to go in to approve the post:
Plug-in Site for Email Post Activation
http://www.paulmc.org/whatithink/wordpress/plugins/email-post-activation/
More on Blogging by Email
http://codex.wordpress.org/Blog_by_Email
Same for me, nada, zilch, goose egg.