If you would like to test an auto-alert in the project management software, please keep in mind:

Set the alert for someone other than the person making the change.
Project Insight assumes the resource knows what action they just took. For example, if I mark a task 100% complete, the alert on 'task update' will not be sent to me as I just performed the update. It will send an alert to any other person that has that particular alert set. The software was designed this way to minimize the sending of useless email auto alerts

Auto-alerts set for a person's "email address" or a non-Project Insight user do not check against the user profiles to match up with users. If you set an alert for a person's email address, then the alerts WILL send to that person. Project Insight does not cross check the user database prior to sending, so the user and the email address will each get an alert.

To learn more about alerts in general, watch this product video:

Social Collaboration and Alerts