With a recent update (running Trac 0.11.6, python 2.4) I got the following error. Commenting out the "timeout=self.smtp_timeout" in email_distributor.py seems to have fixed the problem and I'm getting email notifications again.
2010-02-24 10:51:10,576 Trac[api] ERROR: AnnouncementSystem failed.
Traceback (most recent call last):
File "/usr/lib/python2.4/site-packages/AnnouncerPlugin-1.0_a1-py2.4.egg/announcerplugin/api.py", line 369, in _real_send
distributor.distribute(transport, packages[transport], evt)
File "/usr/lib/python2.4/site-packages/AnnouncerPlugin-1.0_a1-py2.4.egg/announcerplugin/distributors/email_distributor.py", line 236, in distribute
self._do_send(transport, event, k, v, fmtdict[k])
File "/usr/lib/python2.4/site-packages/AnnouncerPlugin-1.0_a1-py2.4.egg/announcerplugin/distributors/email_distributor.py", line 392, in _do_send
self._transmit(*package)
File "/usr/lib/python2.4/site-packages/AnnouncerPlugin-1.0_a1-py2.4.egg/announcerplugin/distributors/email_distributor.py", line 409, in _transmit
timeout=self.smtp_timeout
TypeError: __init__() got an unexpected keyword argument 'timeout'
2010-02-24 10:51:10,577 Trac[api] DEBUG: AnnouncementSystem sent event in 0.11 seconds.