SecurityAssist Forgotpassword issue

Problem 1
Getting error "Your email address could not be found in our records. Please try again."
Under the security assist email password behavior the database connection and table are set to users where users' registered data is stored in (currently I registered myself to test)
The Look up column is set to User email with no encryption, and User name is also set to UserEmail without encription.
When I see the database table I can see the data I registered, but somehow the forgotpassword.php can not read the data. I have been struggling with this almost 24 hours without sleep.

Problem 2
to send email from the php file, I need to set up smtp sereve, but I beleive the smtp server need authentication, but there is no option for that.
If I set as PEAR mail, I get error something like this,
"Parse error: syntax error, unexpected T_IF, expecting T_STRING in E:\xampp\htdocs\chabuta\webassist\security_assist\mail_php.php on line 88"
We are using justhost for hosting and I contacted them but they can't do tech support at all, the person I talked with didn't even know what smtp is.

I beleive problem 1 is independent problem, as it is the error before the email sending.
I am attaching forgotpassword.php and mail_php.php file and security assist setup window shots.
Thanks,