Membership plugin allowing full access instantly after form submission, before payment

After only completing and submitting the signup form, users are instantly logged in and have full access before payment, before even clicking on the paypal subscribe button. This is not a Paypal cancelled payment issue, it's not even getting that far. They have a created account with full access immediately after form submission.

I use Membership on a WP/BP installation. I even have "Registration Disabled" in my Network Settings. I don't have / offer any free accounts, only 2 possible subscriptions and both are paid. Membership does consider this account "Inactive" and if they log out, they cannot log back in. However, I woke up this morning to a real live example. Someone had created an account and even created a blog and posted several spam messages. That's what prompted me to start testing how this could happen. My site is not even launched yet. I need to get this sorted before I launch soon.

I made a video for reference, http://www.screenr.com/zvZ8