I was on harry i did not search but now i found the solution
you have to turn off strict mode for mysql
open my.ini
find the folloing
sql-mode="STRICT_TRANS_TABLES,NO_AUTO_CREATE_USER,NO_ENGINE_SUBSTITUTION"
and replace it with
sql-mode="NO_AUTO_CREATE_USER,NO_ENGINE_SUBSTITUTION" //stop strict mode
then restart mysql service
see the follwoing thread
http://osticket.com/forums/showthread.php?t=2374&highlight=Unable+update+email.+Internal+error+occured&page=2(http://osticket.com/forums/showthread.php?t=2374&highlight=Unable+update+email.+Internal+error+occured&page=2)
here