Privacy for Wordpress ( single site installation )

Hi,

I have installed the Multisite privacy plugin and I wanted to make my Wordpress site ( a single site install, no networks, no buddypress ) such that

1) only registered users can read the blog posts in the site. 2) But anonymous users can choose to register for the site should they choose to.

However, I'm stuck with 1, after selecting "Only registered users of this blogs can have access - anyone found under Users > All Users can have access. " , anonymous users can still read my blog posts. I've also tried the option "Visitors must have a login - anyone that is a registered user of site can gain access. ". But same thing, anonymous users can still read my blog posts.

Is there any workaround or am I missing something?

Thanks!