Looks like the problem was with the FROM: E-mail Address setting. Originally I had set this to the admin id in form "xx@yy.zz". Yesterday I was cleaning up things and I took the default as stated in the settings page. This caused the problem as the "abc <xx@yy.zz>" default setting was inserted.
As advised "The default FROM: address is based on your blog's name and the WP default address. It can be changed, but I highly recommend you do not, as it may render the plugin useless. If you do change the FROM: address, triple check if all admin emails are being sent/received!" changing this caused the issue, regardless of the fact that I did not start out with the default.
In fact it appears that switching between "xx@yy.zz" and "abc <xx@yy.zz>" formats is the bug. I can put in any "xx@yy.zz" format e-mail since that is how I originally implemented.
Jeff