When I disable the "Allow New Users to Register" for the site, and I at the same time enable Windows Live authentication, I have this strange behavior:

1. The user sees the login page on my site
2. They click the link for "Sign In" with your Windows Live ID
3. They see the MSN sign-in page, and type their password
4. They are redirected back to the page (the return URL is set correctly to .../WindowsLiveAuthHandler.aspx).
5. The system still says "Sign In" in the corner --- mojoPortal does not recognize the log-in!
6. When I click "Sign In", the link to Windows Live ID sign-in has changed to say "Sign Out" (even though mojoPortal is not signed in)

But, when I enable the "Allow New Users to Register" for the site, I instead have a different result at step 5:

5. The users are asked to enter a user name and e-mail
6. Registration succeeds, and they are now authenticated to mojoPortal correctly

Is it a requirement that I must allow new registrations to enable Windows Live ID authentication?
Would that imply, in order to be able to pre-authenticate users before using the site, that I need to create a new user group and then manually add newly joined users to this group through the administration console?
(Referring to this link: http://www.mojoportal.com/Forums/Thread.aspx?pageid=5&mid=34&ItemID=5&thread=2094&postid=8660)

I tried to create a new account with the same e-mail address as the Windows Live ID e-mail address but the system still did not recognize the user, no matter whether the "Allow New Users to Register" was enabled or not.
(Referring to this link: http://www.mojoportal.com/Forums/Thread.aspx?pageid=5&mid=34&ItemID=5&thread=2342&postid=9884)

Hope this can be solved.

Granted, but I think it should be stated near these options that the combination of these two selections will create strange results (it was not directly obvious to me, at least ).

I have configured everything for using Live ID, however if existing user (User that registered prior to my enabling Live ID) tries to log on using Live ID, they get directed to the new user registration page.  If they enter username and email, they get error telling them that the user email address is already in use.

I think I'm missing something here.  Any idea.