New Member not getting customized email

Using s2Member version 110815, we have set New User Email Notification to “YES” and customized the message.

Upon registering as a new user, however, all we get is the generic Activate Your Account message:

Thanks for registering! To complete the activation of your account please click the following link:
http://mydomain.com/activate?key=blahblah

Are there other settings we have to change to make this work?

Also running BuddyPress version 1.2.9 on the site.

Thanks,
Michael