Logged In Users can Create Sites

Hey Everyone

Something weird I am running across in Wordrpress MU/Buddypress. When selecting "Logged in users may register new sites" then normal user registration is disabled. However, my understanding of this would be to allow user registration but not site registration until one is actually logged in as a member.

Is this a bug or by design? How do I allow users to register but not create a site until after they are a logged in member? Hopefully I make sense. I just don't want the option to register a site to show up at the initial user registration page. Thanks