Apologies – have just found out that it is a general wordpress setting, not a Buddy Press setting, found under Settings > General Settings. I have now ticked the box and it is working fine.
I have this problem too. However, I can’t see where to set-up user registration in the BP admin section – these are the options I have under General Settings –
Disable BuddyPress to WordPress profile syncing?: Yes No
Hide admin bar for logged out users?: Yes No
Disable avatar uploads? (Gravatars will still work): Yes No
Disable user account deletion?: Yes No
Disable global forum directory?: Yes No
Disable activity stream commenting on blog and forum posts?:
