I've seen the problem reported a few times, but I don't remember seeing a solution..I don't know for sure, but I have a guess. At some point between fetchmail 5.5.0 (which shipped with e-smith 4.1.2) and fetchmail 5.7.4 (which ships with SME v5), fetchmail was changed to check whether the .fetchmailrc file had been changed since the last poll. This would remove the requirement of stopping and restarting fetchmail when changes were made.
This is well and good, except that e-smith doesn't use a .fetchmailrc file, and I'm wondering if the lack of that file could be confusing fetchmail. Try doing "touch /root/.fetchmailrc" and see if that helps.