Am I missing something in setup?
kparker,
It's very likely that you don't have the prompt enabled to email the client on ticket resolution.
Make sure the 'Prompt Client to Confirm Ticket Resolution' is enabled within the Status Type of Resolved, here's a screenshot of the setting you're looking for:
If this is enabled already, whoever is resolving the ticket needs to be using the 'Save and E-Mail' when resolving the ticket.
-Midnight
That is already set correctly.
deleted the settings, saved, reset to what they were, saved. now seems to work :-)