diff --git a/VERSION b/VERSION
index 72b693c1..6a5794bd 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-Version 1.99.4 (2011-12-31 12:28:04) stable
+Version 1.99.4 (2011-12-31 14:37:01) stable
diff --git a/gluon/tools.py b/gluon/tools.py
index 1fd91108..1d9a3624 100644
--- a/gluon/tools.py
+++ b/gluon/tools.py
@@ -1909,7 +1909,8 @@ class Auth(object):
                     response.flash = self.messages.unable_send_email
                     return form
                 session.flash = self.messages.email_sent
-            if self.settings.registration_requires_approval:
+            if self.settings.registration_requires_approval and \
+               not self.settings.registration_requires_verification:
                 table_user[form.vars.id] = dict(registration_key='pending')
                 session.flash = self.messages.registration_pending
             elif (not self.settings.registration_requires_verification or \