This is done via notification schemes.
http://confluence.atlassian.com/display/JIRA/Creating+a+Notification+Scheme
Basically you can control who gets notified after what action. e.g. adding a comment can notify the assignee, reporter and a particular project role or group
I kept default setting and dont change anythings.
The assigner and reporter do not received the notify email when icreate issue, comment, close .v.v.v
I don't know why :-s
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Is your project configured to use the Default Notification Scheme (or the scheme you created).
If it is already done, a support request to Atlassian will help, since you say it is OnDemand version.
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