I am getting SendMail Error[7]: Invaild parameters when VT is trying to alarm out. I have tested through PowerShell and I can get a test email to work. Would this be an Email Server issue or perhaps how I have the alarm notification setup in VT?

As per the list of error codes in the SendMail help topic, error code 7 indicates that the mail server rejected the message because the mail body result code in the SMTP conversation was something other than 250.

There might be more information in the alarm event log.