Well you asked if receive PM's was enabled I thought you were referring to the usergroup setting, not the default registration option...my fault. I assumed this because I have read this is a common problem.
Answer to your actual question is yes, the default reg option is to receive PM's and it does work. And have verified test accounts w/ still no message sent.
I heard that hacks can create this problem, but with the major ones I have installed it would be difficult to figure it out. I may compare db tables between a clean install and the current install to see if there are any differences.
Thanks.
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