I've been wondering for some time why I can't get the mail function in yum-updatesd to work, and I finally decided to have a look at the code. What I found is that it does not use the "normal" way of sending mail by invoking "sendmail", but instead tries to do it via SMTP. To make things worse, you cannot configure which SMTP server it should talk to, so you have to have a MSA running locally on each and every machine. Please fix into something more sane (Also, changing the default address to "root" instead of "root@localhost" would also be nice and more in line with other software and also make it work directly with more mail systems)
As it turns out, all of the above has been implemented for F8 :)
Any change of a backport? :)