That switch only enables automatically falling back to SMS if it starts as iMessage but fails. If it never detects iMessage in the first place it will send as an SMS regardless.Any update, Smokey? I'm having the same issue getting iMessage to work. I've had a hard time finding someone to test it out with, but finally a buddy went out and got an iPhone this weekend. I have sent a few texts to him before, so I have the conversation with him in Messages already. I even went so far as to turn "Send as SMS" OFF and sent him a message, yet everything is still green and under the "Text Message" section, so I think it sent it as an SMS even though I turned that off. WTFUX