New account not active after successfully registering and subscribing – Paypal

First off EVERYTHING else has been setup perfectly. Everything works exactly as it should, and for that I’m grateful! After searching on here, I’ve seen very similar issues to my only one, but they are all open ended or got off topic to some other problem. Here’s the situation:

Totally logged out and visiting the site as a user would for the first time, I went through the subscription process.

1. I first created a new account then clicked the register button.

2. I then clicked on the subscription option Unlimited Access (subscription as successfully created by me) which has the Paypal logo (gateway is setup for recurring).

3. I go through the Paypal checkout process.

4. I successfully paid the membership amount (as confirmed with receipt to both Paypal accounts for the recurring monthly agreement).

5. I am redirected back to the home page of my site in a logged out state.

6. I go to login and receive the error “Sorry, this account is not active.” (I saw someone mention an activation email being sent to new users, but one was not received and I don’t see an option to toggle this feature from an Admin perspective.)

7. When logged in as admin, I can see the newly created member, but it is inactive with no subscription level.

Obviously, I could manually activate as an Admin, but that defeats several purposes of using this plugin. I have made a User and activated the Unlimited Access subscription through Admin, so I know User and Member Levels work properly once activated. I will attach a screenshot of every Membership Setting. Membership version is 2.0.7. WordPress Version is 3.3.1. I really am hoping I can get this fixed very soon so that I can launch the site ASAP. Thanks in advance!