Thanks for registering! To complete the activation of your account please click the following link:

After sign up you receive the message" Thanks for registering! To complete the activation of your account please click the following link:" BUT... it does not let people login after sign up? is there a setting I'm missing?

tried:
1.Under Settings
General
Membership I checked: Anyone can register, tried "member and "Subscriber" both.

and under membership I have
Options: Visitor.

With Visitor level set to register.

any thoughts? what am I missing?