=== modified file 'modules/user/user.module'
--- modules/user/user.module	
+++ modules/user/user.module	
@@ -1175,7 +1175,12 @@ function user_register_submit($form_id, 
 
   $mail = $form_values['mail'];
   $name = $form_values['name'];
-  $pass = $admin ? $form_values['pass'] : user_password();
+  if (!variable_get('user_email_verification', TRUE) || $admin) {
+    $pass = $form_values['pass'];
+  }
+  else {
+    $pass = user_password();
+  };
   $notify = $form_values['notify'];
   $from = variable_get('site_mail', ini_get('sendmail_from'));
   if (isset($form_values['roles'])) {
@@ -1208,6 +1213,14 @@ function user_register_submit($form_id, 
     if ($admin && !$notify) {
       drupal_set_message(t('Created a new user account. No e-mail has been sent.'));
     }
+    else if (!variable_get('user_email_verification', TRUE) && $account->status && !$admin) {
+      // No e-mail verification is required, create new user account, and login user immediately.
+      $subject = _user_mail_text('welcome_subject', $variables);
+      $body = _user_mail_text('welcome_body', $variables);
+      drupal_mail('user-register-welcome', $mail, $subject, $body, $from);
+      user_authenticate($account->name, trim($pass));
+      drupal_goto();
+    }
     else if ($account->status || $notify) {
       // Create new user account, no administrator approval required.
       $subject = $notify ? _user_mail_text('admin_subject', $variables) : _user_mail_text('welcome_subject', $variables);
@@ -1265,7 +1278,7 @@ function user_edit_form($uid, $edit, $re
       '#description' => t('To change the current user password, enter the new password in both fields.'),
     );
   }
-  elseif ($register && $admin) {
+  elseif (!variable_get('user_email_verification', TRUE) || $admin) {
     $form['account']['pass'] = array('#type' => 'password',
       '#title' => t('Password'),
       '#size' => 30,
@@ -1316,6 +1329,7 @@ function _user_edit_validate($uid, &$edi
   }
 
   // Validate the e-mail address:
+  if ( variable_get('user_email_verification', TRUE) ) {
   if ($error = user_validate_mail($edit['mail'])) {
     form_set_error('mail', $error);
   }
@@ -1325,6 +1339,7 @@ function _user_edit_validate($uid, &$edi
   else if (drupal_is_denied('mail', $edit['mail'])) {
     form_set_error('mail', t('The e-mail address %email has been denied access.', array('%email' => theme('placeholder', $edit['mail']))));
   }
+  }
 
   // If required, validate the uploaded picture.
   if ($file = file_check_upload('picture_upload')) {
@@ -1907,6 +1922,7 @@ function user_admin_settings() {
   // User registration settings.
   $form['registration'] = array('#type' => 'fieldset', '#title' => t('User registration settings'));
   $form['registration']['user_register'] = array('#type' => 'radios', '#title' => t('Public registrations'), '#default_value' => variable_get('user_register', 1), '#options' => array(t('Only site administrators can create new user accounts.'), t('Visitors can create accounts and no administrator approval is required.'), t('Visitors can create accounts but administrator approval is required.')));
+    $form['registration']['user_email_verification'] = array('#type' => 'checkbox', '#title' => t('Require e-mail verification when a visitor creates an account'), '#default_value' => variable_get('user_email_verification', TRUE), '#description' => t('Uncheck this box to allow new registrants to create own password and immediately login.'));
   $form['registration']['user_registration_help'] = array('#type' => 'textarea', '#title' => t('User registration guidelines'), '#default_value' => variable_get('user_registration_help', ''), '#description' => t('This text is displayed at the top of the user registration form. It\'s useful for helping or instructing your users.'));
 
   // User e-mail settings.