BuddPress New User Signup Loop

I figured I would start a new thread since I was posting on a thread that was actually about a completely different issue.

The problem...everything looks great...when a new user attempts to sign up then they are taken to the wp-login.php which then if they click on the "Register" selection underneath the user and password fields they are then again taken to the same login screen, it does not ever go to the BuddyPress registration as it is supposed to, even when attempted to redirect it still does the same thing, only with the redirect properly in the url as it is supposed to be...

In the WP admin it is set to allow blogs and new users under the options in Amin, supporter is set to allow access to BuddyPress groups etc...I don't know of anywhere that it is set to not allow new blogs in order to cause such a problem...the theme does not seem to be the issue as going to the default them that came a fresh download of BP 1.3.3 did the exact same thing. The WP install is the latest upgrade to 2.8.6...as I said in my other post, I am at a complete and total loss as to where to even look at this point....please help, a suggestion, a cup of coffee and oatmeal and raisin cookie, or something, anything at this point is more than greatly appreciated...I feel as I am standing at the see through door ready to walk into the room but the door handle is missing.... url of the site is politicallygrounded.com by the way....always forget to add that...