The email should still work in CS3 and above. Just the advanced querybuilder, and database modeling wouldn't work. The issue with the email isn't related to your Dreamweaver version.
If you post FTP information and a url where I can test I will debug your email page and let you know what the issue is.
Email won't work on your localhost since local servers won't have a functioning SMTP server to send emails. You would have to be using a hosted server for testing email.