With My Notifications you can override the Prject default Notificiations and define individually when you want to receive emails. This can be set for a specific folder or for an entire project. Simply right-click to open the context menu of a project or folder in the project tree in the navigation and click on My Notifications.
Here you can then use Configure folder notifications settings to specify that the default project notifications are overwritten. Just select the respective item type on the left, then decide if emails should be sent Never, For all changes (caution: this can lead to a lot of emails) or only For selected changes.
If you choose For selected changes, you then have the following options:
Assignment of an item to me
Changes of items assigned to me
Changes in items owned by me
You also have the option to apply the settings to the selected folder/project only or to all subfolders.
If you select 'Changes in Status' you have the option to define a status. You will then get notifications when items reach that specific status. You can also select more than one status. If you leave the field empty, you will receive an email on any status change. You can also specify that notifications are not sent to the user when changes are made by that user.
You can also use the Watchers button in any item to be added directly in CC, which notifies you of any changes to that item. You can also use the button to send other users an e-mail with a link to an item directly from the respective item.