I was tired when I wrote the above. Let me give more detail.
Everywhere in the app the sender email address is displayed properly. But in the actual email received the domain is missing from the header of the email.
So instead of it showing the sender as
username@mysite.com it shows it as username@com with the domain and trailing period removed. This will flag your emails as spam and either send them into a spam folder or most likely get you listed. Either outcome is undesirable but the latter is death to a forum.