Added smtp authorization settings to initialize function, as per this bug report:  http://codeigniter.com/bug_tracker/bug/4615/
diff --git a/system/libraries/Email.php b/system/libraries/Email.php
index 592ead3..8c56ccc 100644
--- a/system/libraries/Email.php
+++ b/system/libraries/Email.php
@@ -88,10 +88,12 @@
 		{

 			$this->initialize($config);

 		}	

-

-		$this->_smtp_auth = ($this->smtp_user == '' AND $this->smtp_pass == '') ? FALSE : TRUE;	

-		$this->_safe_mode = ((boolean)@ini_get("safe_mode") === FALSE) ? FALSE : TRUE;

-

+		else

+		{

+			$this->_smtp_auth = ($this->smtp_user == '' AND $this->smtp_pass == '') ? FALSE : TRUE;	

+			$this->_safe_mode = ((boolean)@ini_get("safe_mode") === FALSE) ? FALSE : TRUE;

+		}

+		

 		log_message('debug', "Email Class Initialized");

 	}

 

@@ -123,6 +125,9 @@
 				}	

 			}

 		}

+		

+		$this->_smtp_auth = ($this->smtp_user == '' AND $this->smtp_pass == '') ? FALSE : TRUE;	

+		$this->_safe_mode = ((boolean)@ini_get("safe_mode") === FALSE) ? FALSE : TRUE;

 	}

   	

 	// --------------------------------------------------------------------