Last time I checked, Woo Canvas theme even with the BP Template Pack doesn’t work with BuddyPress… JS conflicts. Please check theme author’s forums if they have even resolved this issue.
Best way to test your BP install is to use the BP Default theme to check if everything — group creation, member registration etc — is in working order before using another theme.
Re S2Member plugin, have you searched or asked at the s2member plugin’s forums? I’ve seen some pointers there about limiting access there before.
