e-commerce – not sending emails

I have all the options set up for using e-commerce on my web site. However when I test the e-commerce via Paypal I do not seem to get any email messages to my test user or my admin account.

I can see the orders and set them to confirmed assuming this would trigger emails but nothing happens.

Also when using the download option and checking the download link in the order – all I get is new page in browser with message – “error”