Method of registration problem

[vineet]

SMF Version: SMF 1.1 RC2
I have installed SMF 1.1RC2 and while the "immediate registration" feature works the "member activation" feature for the Method of registration employed for new members does NOT work. I'm running Debian 3.1 and postfix. The mail log shows the following error:

550 Requested action not taken: Nonstandard SMTP line terminator. (in reply to end of DATA command))

Where/how do I fix this nonstandard line terminator?