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It's a fresh install.
My XOOPS is 2.16 but last night I saw that 2.18 is available so I have it downloaded so I can upgrade this weekend.
There is only one version of the module that I am aware of.
The tpl files are in English. It took me awhile to find them but I knew that was the first place to look. So I THINK that somewhere in whatever file controls the sending of the email it is calling the wrong language file. But that's pretty much the end of my abilities to fix this. I don't know the file structure of XOOPS well enough at this point to know where to look. I was in the adminactivate.tpl (if I remember correctly) and tried to adjust the path to make sure it was going to the english folder but that did not work.
Basically I've just been poking through files trying to find something that LOOKS like it might be set wrong.
Also, I know the password recovery emails and the notification of module updates emails are being sent in english.