User registered with Membership is not active.

jcnjr
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I noticed a number of similar topics on this subject, but they've all been marked as resolved.

After configuring Membership 3-RC2 I registered a new user on the main site via a Free account subscription prohibiting blog creation. But that user cannot not log in. The user appears in the wp-admin/network/users list, but log in attempts result in the WP error:

Sorry, this account is not active.

Only the following emails were received upon registration:
- Welcome email (Membership Communication), sent to new user
- Your username and password, sent to new user
- New User Registration, sent to Super Admin

No registration email was ever received by new user, so the confirmation link was never clicked.

I have the Free subscription and PayPal Express gateways activated.

Immediately upon registration, the new user was directed back to the /register page (showing his current subscription level) instead of the /welcome page I have configured for redirection of registered members.

What other information can I provide to help troubleshoot this issue? I'm providing no link since the site is in an unstable state while I continue configuration. Thanks in advance for any feedback.