[Typo3] Login form not working

[or ko]

I created a sysfolder and created my usergroup in there - called usergroup.

I have created a new website user. In groups in the user setup I have 
selected the group and I set an email address.

I can see the website user and edit it.

I put a login form on the homepage but the user doesn't login. I tryed using 
the Better Login Box extention. I clicked on the forgotten password bit so 
it would send me an email:

We couldn't find a username for this email address and so cannot send
the password to you. Probably you misspelled the email address
(upper/lower case makes a difference) or maybe you even didn't
register yet?

I tryed using the Frontend User Administration to set a new account which it 
does. I appoved the account in the BE and allocated the usergroup etc...

This user can't log in either.

Is there some permission thing I am missing???

Thankyou

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