Passing Grade Email

This 'feature' is often misunderstood.

This will NOT automatically send an email to the address you specify.  The MOST it will do is spawn a new email to open in the end user's email client (e.g Outlook) with the email address you specified already sitting in the TO field.  That's it.

For it to even do this much you will usually need to publish to a web server, but since you're using EXE that might also be your issue.  Have you checked whether Flash Global Security is set up to trust the folder location of this EXE?