Thanks Kevin.
Going with Option #2, and trying that code you just included above at register_activation_process doesn't seem to work. I would prefer to get this to work since the code seems so much "neater" and easier to implement. Any way I can break this out to test the individual components to see what's failing?
Do you think Option #1 is the only way to get this to work? I'm a little hesitant to go with Option #1 just because I don't fully understand it I suppose. When you say "change the useractivation table in the same place you're currently setting the user title" does that mean edit
this modification's code to add something near the code where it sets the usergroup to the awaiting moderation group?
Thank you again for all your patience and time.