Who determines when a profile is active or not active? (and related questions)
Using Jamroom
PJ, these settings are mostly found in your User Accounts module, especially in the tabs of Global Config and Quota Config. Go over all those settings and read the little "?" help tips. It's obvious that you currently have it set for "admin validation"... you must approve the new members before their profile and membership becomes active.
Look in your ACP -> dashboard to see the Pending Members- waiting for your approval before they become active and are then able to post and be seen by other members. You can approve them from there in the dashboard, or simply check that 'active' profile box you saw to approve them. Same thing.
Ultrajam is right- log OUT, then go through the process of creating a new member yourself- using a new (working) email and PW and name. You'll then see how a new member sees the process, and if there are glitches to fix in the process. Keep that test member- it's a handy way of logging in to see what your members see and experience. As an admin, you will always see some things that normal members do NOT see, and that can sometimes be confusing, until you sign in as a test member to check it.