OK, I find that it works with a new 4.2.1 installation. Did you enter anything for "Maximum Elapsed Time" or "Limit Notifications by Registration Time"? And what did you select for "Action". When you say it went ahead with the registration, did it actually create the user? If you chose "Stealth" for the action it will show you the message as if the user had been created even though it wasn't.
Edit: I'm sending you a PM...
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