Make sure that you have a SMS path configured in your VIP.ini file.
The entry looks something like this:
[VIP]
DatabaseName=gem:/drive2/Interbase/Emerald/vip.gdb
ICONTRAY=1
AUTOSHOW=0
SHOWOA=0
SMSPath=\\Gem\Datatex\SMSBase\outbox\
Hotkeys=1
ALSO SEE:
SMS Manager
Basic Setup instructions for the SMSManager