After looking over that part of the Code, there is quick fix for this if you do not want to use the Split Login Screen.
Look for this in includes/templates/YOUR-TEMPLATES/tpl_modules_create_account.php around line 189:
Code:
<?php
if (strstr($_SERVER['REQUEST_URI'],'create_account') && CREATE_ACCOUNT_VALIDATION == 'true' || strstr($_SERVER['REQUEST_URI'],'login') && LOGIN_VALIDATION == 'true') {
?>
Change it to this
Code:
<?php
if (strstr($_SERVER['REQUEST_URI'],'create_account') && CREATE_ACCOUNT_VALIDATION == 'true' || strstr($_SERVER['REQUEST_URI'],'login') && CREATE_ACCOUNT_VALIDATION == 'true') {
?>
In the next release, I will make this a toggle as well.