BuddyPress and the Blogs MU theme - new user login error

I have installed BuddyPress on a single site http://www.our-minecraft.com and am using the Blogs MU theme. (WP 3.2.1)

I started a new user to test the settings and when I responded to the email link I was taken to a page with a log in link in the page that did not work. It's hard to replicate this as the activation process has been completed on that user.