This is how it works, because, it is login not registration with FB connect, in this case you need to disable FB connect plugin as well.

Thank you.  I'm also thoroughly impressed that I got a notification in my Oxwall admin that you responded.  Very cool.

No problem, I'm going to mark this post as Answered then. 

Ross, thanks again for your reply.  I did want to add that this is something that Oxwall should consider - showing the FB Connect button while still disabling it consistent with a site wide disable.  The reason is that FB Connect button really serves as a marketing element letting people know that once the site is available, it does have FB Connect functionality.  Of course, you can just write that as a message on the login window but that's hardly as professional and effetive as seeing the FB login button as a visual cue.