When front end registration completes the users are added fine but not into the default user group as expected. They are just in the system with no group. I was expecting them to be registered into the default group - am i missing something?
I get bit by this a lot. Just like @Stephen Lewis suggested - make sure you are not logged into the same browser.
For example, log into the CP with Safari (or whatever) and then use Chrome to actually register an account via your front-end form.