My system is Moss 2007 using FBA pack from codeplex.
After new user register, I can see the pending list in Site Membership Review List and pending notification email is received by new users and administrator.
When I change the user status from pending to approved, the list just stay in Site Membership Review List. Does not move to Manage Forms Based Authentication Users. And user does not receive password email. As administrator, I receive the notification of status changed.