First, I'd like to say thanks for starting the mediagoblin project. It's a sign that the internet is moving in the right direction. =)
Anyway, I'm working on setting up a personal server for some of my friends and me to use, and I've been experimenting with mediagoblin on it. For the most part everything works fine, with the exception of e-mail notifications when a new account is created.
For testing purposes, I'm configuring mediagoblin to use gmail as the SMTP server (I couldn't get it to work locally, need to learn more about setting up SMTP for that), and I ran into an error with authentication.
For reference, here are my smtp settings in mediagoblin_local.ini: