Just did another test and I can send and receive SMS. Also I can see the SMS-Inbox and Outbox folders if I go to Menu / Folders. The only thing not working is the Alt-S shortcut (and Alt-M, etc), which unfortunately I use all the time.
Maybe this will give me an excuse to update the OS...haven't done it yet b/c everything was working so smoothly I was afraid to upset it.
Found this on BB's Support site:
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I am on BES so not sure if this will work.