Weird behaviour after blog registration

I have activated the Remove activation email plugin and Theme My Login which produces the registration widget on my front page. (websitescamp.com)

The following scenarios happen:

1) When a new user registers (with both plugins activated), all goes well and he receives the success message with the login details.

2) When an already registered user registers a site (with both plugins activated), the site gets created but no success message shows up in the widget and my slider also falls down.

3) If I deactivate the Remove activation email plugin, all goes well, but new users have to activate their accounts (which I don’t want).

So, could you please let me know what goes wrong on the 2nd scenario?

I’d really want to skip activation and use your plugin.

Thank you very much.