SQLMail Woes !

Trying to get my jobs to send mail when job fails. Should be easy but
it's giving me headache

Had a whole slew of issues. Outlook is installed with a n outlook
mail profile set up that can send mail in outlook. I can create a
SendMail DTS and execute it to send mail

Email works in these scenarios
1. I create a DTS package in SQL Server with just SendMail with the
same Profile "ABC" and click Execute and it sends
2. I can send using Outlook with the same profile "ABC"
3. I can run DTSRun with command prompt calliing the DTS package and
it sends fine

However it wont send in these 3 scenarios (where I need it!):

1. I go to Operator, and put my Profile "ABC" in the Email Name,
click Test and I get this error "Error 22022: SQLServerAgent Error:
The SQLSErverAgent mails ession is not running; check the mail profile
and/or the SQLServerAgent service startup account in the
SQLSErverAGent Properties
sQLServer Agent is running

2. If I add the DTS Package "EmailTest" to one of my jobs as a step
to go to if the 1st step fails, nothing gets sent

3. In JObs -- Notificatioin, If I set the E-maill operator to my
operator, nothing gets sent

I set the Mail Profile to the Mail Profile (in SQL Server AGent'
properties)
However when I click Test, I get this error:
Error 0: Cannot load the DLL sqlmap70.dll, or one of the DLLs it
references

I am using
SQLServer Version 8.00.194,
OS Windows 2003

Help!