I have just started using WebCam Monitor 3.41 and I, too, can't set up email notification.
I get the messages:
"Unable to connect to the DNS server. . . " from Tools/Options/DNS [Test], and
"Could not find the Local DNS. . ." from E-mail Notification Configure [Send Test E-Mail]
In the Tools/Options/DNS window, the Primary DNS, as selected by the program's Autodetect, is shown as 192.168.1.1 which is the local DNS for the wireless router. I have no trouble sending email messages from either the desktop or the laptop.