buddypress account not activating

When i test this and create a profile with membership it works, logs me in and I can use the site. BUT..when I log out and try to log back it is says that the account has not yet been activated. The use shows up in the user profile etc. What's wrong?

allow anyone to register is off in the wordpress general settings.
BuddyPress register page comes up after clicking start membership.
Free payment gateway comes up after filled out form and works.