Steven - I looked at the settings that I have visibility to. From what I can see you have everything set correctly. However I cannot see all of your settings. Mouse over your user name in the top right corner. When the window pops up, look at all of the options under 'Contact Details, Preferences and Alert preferences" Each of these contain a checkbox that has influence over notifications. This software is heavily dependent on Hierarchy and has what appear to us a lot of redundancies. One of those redundancies can negate everything below it in the hierarchy. Yep - Its a bit confusing to all of us but we are working on it. Try these options and let me know if it helps.
Thanks
Scott
P.S. - Nice Avatar