GoDaddy is notoriously difficult with sending emails.
What is your hosting package? If it is a windows hosting package, you will need to convert to a unix Hosting Package.
What version of PHP are they running on your server? If it is PHP4, you will need to have them upgrade your server to PHP 5.
In the Universal Email settings, What have you entered for the From Address? This will need to be a valid address for your domain.
In the toolbar section, click the envelope icon to configure mail server settings. use the following settings:
-Email object: Mail
-Character Set: Default
-SMTP Server: relay-hosting.secureserver.net
- Check the Include From Address as an additional parameter option