Index: modules/user/user.module
===================================================================
RCS file: /cvs/drupal/drupal/modules/user/user.module,v
retrieving revision 1.745.2.32
diff -u -r1.745.2.32 user.module
--- modules/user/user.module	13 Aug 2008 23:59:09 -0000	1.745.2.32
+++ modules/user/user.module	14 Aug 2008 11:46:19 -0000
@@ -1022,6 +1022,9 @@
           watchdog('user', t('New external user: %user using module %module.', array('%user' => $name, '%module' => $module)), WATCHDOG_NOTICE, l(t('edit'), 'user/'. $user->uid .'/edit'));
           break;
         }
+        else {
+          $user = $registered_user;
+        }
       }
     }
   }