Moderation email not being sent

In your scenario it should not be expected to receive an email as those were immediately determined to be abusive (In-Process tab vs Awaiting Review).  Therefore no notification will be sent unless the author appeals the abusive decision.  You can learn more about the process here:

community.telligent.com/.../how-does-moderation-and-abuse-work

Thank you for the prompt response, Patrick.  What would need to be changed so we start getting the email notifications?  If something is in process, does the content get pulled from the site until approved?

It would have to go into the awaiting review state which is indicative of a moderator needing to intercede,  In process means the system has decided its abuse so it is not expecting a moderator to review it, the decision was made.  Of course a user can disagree and appeal, then we re-enter the process for moderator review.  All content entering the abuse workflow is hidden, except for users.

I would definitely review the documentation, it is fairly detailed.