Index: og_statistics.module
===================================================================
--- og_statistics.module	(revision 351)
+++ og_statistics.module	(working copy)
@@ -156,13 +156,28 @@
 function og_statistics_og($op, $gid, $uid, $args) {
   switch ($op) {
     case 'user insert':
-      $time = time();
-      og_statistics_add_user($gid);
-      og_statistics_update_last_member($time, $uid, $gid);
+      $node = node_load($gid);
+      // If not a moderated group, update the membership count,
+      // or if it is a moderated group and unapproved users are to be counted,
+      // then update the statistics.
+      if ($node->og_selective != 1 || ($node->og_selective == 1 && variable_get('og_statistics_include_unapproved_members', TRUE))) {
+        $time = time();
+        og_statistics_add_user($gid);
+        og_statistics_update_last_member($time, $uid, $gid);
+      }
       break;
     case 'user delete':
       og_statistics_remove_user($gid);
       break;
+    case 'user approve':
+      // If not counting unapproved users, add them to the stats when their
+      // membership is approved.
+      if (!variable_get('og_statistics_include_unapproved_members', TRUE)) {
+        $time = time();
+        og_statistics_add_user($gid);
+        og_statistics_update_last_member($time, $uid, $gid);
+      }
+      break;
   }
 }
 
@@ -365,7 +380,12 @@
       'last_comment_uid' => 0,
       'last_member_uid' => 0,
     );
-    $stat['members_count'] = db_result(db_query("SELECT COUNT(uid) FROM {og_uid} WHERE nid = %d", $nid));
+    if (variable_get('og_statistics_include_unapproved_members', TRUE)) {
+      $stat['members_count'] = db_result(db_query("SELECT COUNT(uid) FROM {og_uid} WHERE nid = %d", $nid));
+    }
+    else {
+      $stat['members_count'] = db_result(db_query("SELECT COUNT(uid) FROM {og_uid} WHERE nid = %d AND is_active = 1", $nid));
+    }
     $stat['posts_count'] = db_result(db_query("SELECT COUNT(nid) FROM {og_ancestry} WHERE group_nid = %d", $nid));
     $stat['comments_count'] = db_result(db_query("SELECT COUNT(c.cid) FROM {comments} c
       INNER JOIN {og_ancestry} oa ON oa.nid = c.nid WHERE oa.group_nid = %d", $nid));
Index: og_statistics.admin.inc
===================================================================
--- og_statistics.admin.inc	(revision 351)
+++ og_statistics.admin.inc	(working copy)
@@ -6,6 +6,11 @@
  */
 
 function og_statistics_settings() {
+  $form['include_unapproved_members'] = array(
+    '#type' => 'checkbox',
+    '#title' => t('Include unapproved members in membership count'),
+    '#default_value' => variable_get('og_statistics_include_unapproved_members', TRUE),
+  );
   $form['rebuild'] = array(
     '#type' => 'submit',
     '#value' => t('Rebuild og_statistics')
@@ -15,6 +20,8 @@
 }
 
 function og_statistics_settings_submit(&$form, &$form_state) {
+  variable_set('og_statistics_include_unapproved_members', $form_state['values']['include_unapproved_members']);
+
   // get all group nodes
   $types = og_get_types('group');
   $placeholders = db_placeholders($types, 'varchar');