Catch 22? The WebUI is NOT recommended to be installed on the BES Yet Notifications will only work if the WebUI service is co-located with the Notification Service installed. Only the Notification Service cannot be installed unless you install the BES Plug-in for SOAP/REST API, which, as the name implies, can only be installed on the BES. 
Am I missing something? Has anyone be able to configure the Email Notification option in WebUI when the WebUI is on a separate server?