E-mail me whenever. . . Is this a useless feature?

I have both the “anyone posts a comment” and “a comment is held for moderation” checked.

I logged on to make a post to the blog, and found that a comment had been held for moderation. I had received no e-mail about it when it was posted and held.

But now, I get an e-mail about it.

If the e-mail is only sent when one logs on to administer the blog and can see that there is a comment in the queue, of what bl**dy use is the feature?

Has this been fixed in later versions, or is it some mismatch between WordPress software and Yahoo! webhosting, despite Yahoo! explicitly providing WordPress as a blogging option?

Any help in getting this to work as advertised would be much appreciated.