Results of my support ticket:
Apparently the Universal Email 4 has a small issue with DW CS3. It works fine with DWCS4, just has the following issue with DWCS3:
If you create your email message with the DW Edit Option, and are using DWCS3, it can generate code that has unneccessary tags that are usually used when creating template in dw.
Solution is to simply remove the extraneous tags in your email template after it is generated by UE4, and your email will work just fine. This is a simple work around to get your emails working until they publish an updated extension.
Attached is a screenshot of the code inside my email template (that UE4 created). I highlighted the code I had to remove to get it working properly. As you can see it is template tags broken up by \ slashes.
Hope this helps someone else.