Adding users: On Login "User Registration is Disabled" message

Hi. I am trying to create a new username and password for my site. When I “Add User” with required information and try to log in I get the message “User Registration is Disabled”. So I checked and it was there in the general settings. So I enabled user registration, deleted the new user and then added it again. This time, instead of saying “User Registration is Disabled” it came back with a screen that never came up when using the original subscriber password. What am I missing?