We've managed to get email notifications working from our VDR installation (1.1.0.707). It certainly is not the most elegant solution; but I am hoping by sharing it with the community that it can be made much better.
There is an MTA running in the VDR; but I had no idea what the ramifications of configuring it would be. So we went a much simpler route.
I installed the telnet (telnet-0.17-39.el5.x86_64.rpm); and wrote a script to compare the prior list of logged errors found to the current list of errors found. A cron job runs every 15 minutes and an email is sent (via telnet) when new error messages are found.
I have attached our shell script and the rpm to this posting for your review. Please be gentle 8^)