Our current WPMU has had registration disabled and used a temporary redirect just to be on the safe side... (we were attacked by sploggers and closed the door)...
Just opened it all again, and it will not let me register with _any_ email address.
Sorry, that email address is not allowed!
I have double checked the site admin settings in WPMU2.9.2 and all is OK.
I have also installed WP3.0 as to test our upgrade procedure, there are as of yet no plugins, mu-plugins or themes apart from the default and registration still will not allow any email address!
(The WP3.0 was set up to use a copy of our current 2.9.2 database)
I can only guess that back in time somewhere an update had missed something (although I have not tested on a standard WP3.0 fresh install yet).
I will test that later - but for the time being - it seems like a very very strong security measure (heh)... we have not used the registration for at least 8 months so we have no idea when the problem may have started and have always used our admin pages to add new users.