QUOTE (DonH @ Feb 1 2012, 02:30 PM)

You can wait for ava2011 to reply and hop the answer solves your problem, too. But, If I were you, I would put in a support request.
https://www.avactis.com/support.php. If you give ftp credentials, they will be able to determine what the problem is and fix it for you.
Already ahead of you on that Don, but thanks. I'm still interested in knowing what solved the problem for ava2011, but I'm more interested in getting my problem solved.
One problem that really frustrates me is that my hosting provider's ip addresses keeps getting blacklisted which causes problem for me. Support said my problem is because the ip has been blacklisted and charged me support credits without even looking at the errors I'm getting. These errors are occurring before the email even gets sent where the blacklist would become an issue. I'm getting very tired of support making assumptions and charging me before they take any steps to investigate the issue.
My hosting provider suggested setting up Google Apps and routing email through google which would take care of the issue of the hosting ip's getting blacklisted. Problem here is the mail settings configuration doesn't seem to work when configured for Google Apps - I get the same error message that I initially asked support to look into i.e. "[an error occurred while processing this directive]" - IT'S NOT EVEN CREATING THE EMAIL!!! If it doesn't create the email, how in the #$@$ is this a blacklist problem???
Got the problem resolved. Support did some testing and found that the problem was on the server side and gave me a script to prove it. I passed this information along to the hosting company and they finally stepped up and using the script found a problem in the Cpanel which required a patch be applied. This resolved the "invalid mail settings" error and the problems with sending email from my Store.