No email sent with hg push after setup with mercurial-server package - version-control

Question

I published a repository using the version control program mercurial. More specifically, I installed the mercurial-server program and followed the instructions as given at
http://ekkescorner.wordpress.com/blog-series/git-mercurial/step-by-step-install-mercurial-server-on-ubuntu/
and
http://dev.lshift.net/paul/mercurial-server/docbook.html
. The repository works great, but the problem is that there are no emails sent to the users when we do an hg push after we made some changes.
I found several pages on the internet describing how to supposedly solve this problem, but none of them used mercurial-server to publish the repository and the activation of sending emails with an hg push seems to differ per method of publication.
How do I activate the emailing with an hg push in case of the mercurial-server package? Do I need to setup a SMTP server for mercurial?
The hgrc file that is in the .hg folder of my repository directory is as follows.
[paths]
default = ssh://hg#<ip_address>/jays/project
[extensions]
hgext.notify =
[hooks]
# Enable either changegroup or incoming.
# changegroup will send one email for each push,
# whereas incoming sends one email per changeset.
# Note: Configuring both is possible, but probably not
# what you want, you'll get one email for the group
# and one for each changeset in the group.
changegroup.notify = python:hgext.notify.hook
#commit.notify = python:hgext.notify.hook
#incoming.notify = python:hgext.notify.hook
[email]
from = <from#email.address>
[smtp]
host = <smtp.server.address>
# Optional options:
username = <smtp.server.username>
password = <smtp.server.password>
port = 465
tls = true
# local_hostname = me.example.com
# presently it is necessary to specify the baseurl for the notify
# extension to work. It can be a dummy value if your repo isn't
# available via http
[web]
baseurl = file:///
[notify]
# multiple sources can be specified as a whitespace separated list
sources = serve push pull bundle
# set this to False when you're ready for mail to start sending
test = false
# While the subscription information can be included in this file,
# (in which case, set: config =)
# having it in a separate file allows for it to be version controlled
# and for the option of having subscribers maintain it themselves.
config =
# you can override the changeset template here, if you want.
# If it doesn't start with \n it may confuse the email parser.
# here's an example that makes the changeset template look more like hg log:
#template = \ndetails: {baseurl}{webroot}/rev/{node|short}\nchangeset: {rev}:{node|short}\nuser: {author}\ndate: {date|date}\ndescription:\n{desc}\n
template = \ndetails: "{baseurl}{webroot}"\nchangeset: {rev}:{node|short}\nuser: {author}\ndate: {date|date}\ndescription:\n{desc}\n
# max lines of diffs to include (0=none, -1=all)
maxdiff = 1000
[reposubs]
* = <first#recipient.address>