I'm a moderator...
I just created a test account and it worked like a charm. The confirmation email was sent, I clicked the activation link and landed on a page with this message:
"Thank you for registering, [USERNAME]. Your account has been submitted for moderation by an administrator and will be activated shortly. You will be notified by email when this happens. To return to the forums, click here"
Since I am a lowly 'moderator' and not an 'admin' I don't think I can approve new members though...(sigh)...
BUT, maybe I can help...what error was he getting? Or just have him email me directly at guruerror at hotmail dot com.