Added application config XML for EmailOnLogin
Added config.xml to etc of module path
Added basic observer to config.xml

Delay in deciding whether to put class in models or contollers.
1. No data is handleded here (what Magento says models can be for)
2. No routing is handled here (what Magento says controllers are for)
I say th above because Magento handles MVC in a VERY different way to other frameworks.
I'm erring to MODELS for the class.
Added reference to the model fle code
Adding basic code to see if email goes out from my server and/or adds to log