I've installed TFS 2012 Update 1 and set up email alerts in application tier in TFS admin console. After that I added few test accounts to project's team and set-up some default Team Alerts (like 'when a work item is assigned to me'), all through web access.
Problem is that nobody is receiving any emails, however when users subscribe to those same alerts individually under My Alerts, everything is working fine. Did anybody experienced anything like this? I didn't find any errors in the event viewer.