I'm having the same problem. My CB (RC2) registration emails work beautifully as does my mass email in Joomla 1.5, but the lost password email never gets sent--I've tested it and several of my members have written complaining about it as well but I just can't find anything in the forums or in the documentation that helps.
We are all omnibuses in which our ancestors ride, and every now and then one of them sticks his head out and embarrasses us. — Oliver Wendell Holmes, Sr.