Alerts - Setting up an SMTP alert

I am attempting to set up a SMTP alert using Avast 4.8 Home Edition on a new Win 7 computer.

In the Avast settings box, I chose SMTP. I have entered my SMTP server as well as the other items in that box. I then chose the Avast settings for Alerts. I selected Add and then selected SMTP. Where it asks for a ‘net alert address’, I entered my email address. When I select Test, I get an ‘Unknown Error’ ‘The alert can not be sent’ dialog.

I do not have any email program on this computer but I am thinking that Avast can be set up to send mail directly without use of an email program.

What shall I try next?

That item is there to allow you to receive update alerts.
You need an email address to have the alerts sent to you.