Problems with registration

I have multisite 3.1.2 installed with Set Password - (I also have easy blogs with default to easy) and users can register for both in setting; the registration process was working in past. Now I have developed problem and am trying to troubleshoot cause.
1. New user registration form: OK
2. Email for activation: gets sent out but extremely delayed (30 minutes).
3. The email has the correct password as specified by new user but the message says that they will get another email with password.
4. The second email arrives in another 30 minutes.
5. In the network admin: a new site has been created but does not have new user associated to it.
6. In the network admin: a new user has been created but is not associated to new site.
7. Upon login, new user does not get directed to new site admin but to global network admin where there is only a profile to edit.
8. If you click on the "advanced admin": multiple instances are opened.

I have no idea what is causing this now. At least provide me the expected behavior of the set password plugin. Shouldn't there be just one email for activation? What is generating the need for the second one when the password is already confirmed?

If you can help me understand what may be keeping the User from being connected to new site, would be very helpful. Any why might it be taking 30 minutes for each email