Installed on vb 3.8.7 pl2 and works fine. I still have not tested the return of a user from unapproved group but it should work as usual.
Thanks, nominated
This should be standard feature in VB because in time with many users you will have lots of bounced emails of accounts suspended, full quota or other situation.
I would put the file not in admin folder but in another custom place for security reasons. ( I have renamed my admin folder for security purposes)
I will try later to see if it works, but probably would need some editing in xml file before reinstalling the product.