Invite only should create a submit function, not just remove access to user/register

Hi all,
i'm working with 6.x-2.0-beta3 but i suspect this is still applicable to the D7 version. Essentially, I have a private site in beta testing right now. I would like users to be able to invite other users to join and have those accounts automatically approved but non-invite accounts to be admin approval required. To do this, i see two options with the invite module:

Option 1: user settings -> admin approval is required
Right now, the invite module automatically activates users who were invited to the site. However, no email is sent with a password / one time log in. The module could be updated to do that but I dont suspect this is the right path - some administrators may still want to approve invited users.

Option 2: user settings -> invite only
Invite works by limiting access to user/register to situations where you have received the tokenized url (e.g., /invite/accept/[SOME TOKEN]). if you haven't access is denied. The module could be updated so that users could still access user/register BUT create a new submit function that checks the user settings of the site and if it is invite only, record the user and send the admin approval required email but if the user creation form is being submitted from an invitation, approve the user and send the email with password.

As an aside, right now I have the user creation form embedded on a custom home page (partially relying on the front page module). however, with the user settings set to invite only, if a user submits the embedded user creation form, their account is automatically approved...

I will probably work on a patch for D6 and submit it here once done....

pete