It goes beyond just the tmpdir setting; for those of us who start our mutt configs with "reset all" we wind up with a more or less unusable mail client. In my case it screwed up decoding my aliases with "Warning: Bad IDN" for every single alias I had, ment that I didn't start in my inbox as defined by my $MAIL environment variable, and couldn't decode html email despite having set a tmpdir ... and so forth. It behaves like all the sane compile time defaults were replaced with something unusable.
-- Jamie Heilman http://audible.transient.net/~jamie/