Subscribing as new user in WP and checked box for Receive news updates via email from this site ?

Hi, 

I just installed the Newsletter plugin and I noticed that when subscribing as a new user in my WP website and checked box for "Receive news updates via email from this site" the subscriber is added to the mail list, but a password is not generated. So he/she can not login to my website if they want to post comments. When they request "forgot password" they are getting an error. Thay can only manage news letters subscriptions? Is this a bug in the plugin, or I am missing some setup procedures?

thanks

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    @healerdimitri

    Thank you for your post.

    So the new user registration notification email doesn't go out?

    Does it go out when the subscribe checkbox on the registration form is not checked?

    What is the error that they are getting on the lost password form, can you please paste it here?

    I look forward to your response.

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