FWIW - I just activated my brand new shiny LG Ally this morning and everything seemingly worked fine.

I used the email app to access an email account via IMAP, set up was easy and incoming/outgoing server settings were correct according to the phone. I could receive emails but found that sending failed with a "connection error" message. After a couple of hours of looking through the WWW, a friend suggested I should delete my existing email account and re-install it but using the 'Manual" option instead of the Auto (Next) option. It made a difference and all is well, working as it should... (after deleting email account, I did a shut down and restart)

Hope this helps a couple of you out there... Rick