Hi Stephy,
I found out the problem.
The conflict is Login With Ajax
Version 3.0.4 | By NetWebLogic | Visit plugin site
Because the registration is done via a pop up made by the Login with Ajax plugin. Using that method, your TOS DOES NOT NEED to be ticked to proceed with registration.
However, using the normal wordpress registration page, your TOS NEEDS to be ticked in order to proceed.
Any ideas how to add support for your TOS to the Login with Ajax plugin 
Oh another plugin i found an issue with, kinda.
WP Hide Dashboard
Version 2.1 | By Kim Parsell | Visit plugin site
When WP Hide Dashboard is enabled, and you set your TOS Terms Page Admin Menu to "dashboard"; inside the user profile page, the "Agreed to site Terms & Conditions on June 16, 2011" will not work, and only redirects to an error page.
Setting the TOS terms page admin menu to profile, or settings works however. Or even just disabling the WP Hide Dashboard.
For now i disabled the WP Hide Dashboard because not really needed yet. Not much of a biggie but something just to make you aware of 
The other issues i came across has already been reported in the others threads, so i won't bore you with the same issues by repeating them again 