Incorrect participant status applied to event registrations

[Upperholme]

I've just set up a test event using 4.1b3 and D7, and set the participants registrations as requiring approval. All the required participant statuses have been enabled.
I assume that the participant would initially be allocated the "awaiting approval" status, and when an administrator approved the registration, the stays should switch to "pending from approval" and a further message then gets sent to the participant enabling them to confirm/complete, at which point the status should then switch to "registered".
In my test, I registered a participant, and their status was immediately set to "registered". They received the very confusing email which read:

"Dear XX,

Thank you for your participation. This letter is a confirmation that your registration has been received and your status has been updated to registered for the following:

Your registration has been submitted.

Once your registration has been reviewed, you will receive an email with a link to a web page where you can complete the registration process."

Which looks to be the likely default text for both the initial message and the second - post-approval - message conflated into one email.