Vtiger 7.1 Follow record function is not working

How to reproduce:

1. Create 2 users (admin and test). Admin has admin rights, Test is non admin but has CEO role.
2. Login as test and follow a Contact
3. Login as Admin and change the first name and last name

Expected result: Test user should get email about the updates

Observed result: Email not received by the Test user

Out going server set: yes Test user has valid Email: Yes Cron is scheduled: yes

Have sent an email to the Test user from CRM and it has been received, which indicates that the email functionality is working properly.

Test instance: http://dev1.automatesmb.net/release/710rc admin/admin test/test