Yes all the tests are on a remote server. Just to be clear as well in case it matters but I have two carts so far working off of the same server. I did a test to make sure the other cart was working and it is (See attach cart_examp_Aug3.jpg).
Mail setup is identical for both: See Cart_emailsetup_Aug3.jpg
Only diference on this page is the CC field which has the recipient getting the information from a database.
I will try removing this option to see if it clears things up and get back to you.