XF 1.2 Email preferences won't set since upgrade

Under 1.1.5 I had emails set up from the board ACP/Options/email options

Sent from default. All this worked, but after upgrading to 1.2.3 this no longer works.

The default email address just goes to my login name and when I try to change it, it just reverts. The password box is highlighted in yellow which is odd since SMTP is not being used.

Does anyone have a clue what the problem might be please?

Might there be a way of hacking the database of a file to get this right - non of my members are receiving notifications!

Thanks you very much in anticipation