[93Corvette]

Just in case this happens to any other people, here is the solution:
"The "Banned Email Addresses" setting is supposed to be delimited by spaces, not line breaks. That is most likely the cause of your problem.

You need to fix the formatting of the banned email list. You can confirm the problem by temporarily clearing out that list and trying to register."

I fixed this by erasing all of my spammers IP and Email address in my
ACP>vBulletin Options>User Banning Option>Banned IP Addresses
and
ACP>vBulletin Options>User Banning Option>Banned Email Addresses

God knows, why my failed users weren't on those lists, but by erasing the list it seems to have worked.... Note to self, never use a line space, always just a regular space between each user.

Hopes this helps someone....