I'm having the same problem - and yes, it is the correct email-address!
I'm also using the standard mail-command in some of my own pages, and the mail flies through almost even before you can switch to your mail-program and check for new mail!
But everything sent by the "native" PHP_Fusion never gets anywhere! Just checked the contact-form again - got nothing. Tried registering a new user and checked for the mail for that, but got nothing. Tried sending a PM to my other username, which then should get notified by mail, but nothing happens...