This is the standard scenario:
Now there are at least two pathways:
While there are obvious benefits in (2) as far as the user's experience is concerned, there could be drawbacks as well. Option (1) offers improved security at cost of UX.
Which of the scenarios is preferable and why? Any serious flaws in any of them?
If your user does not enter sensitive data during the registration process, logging them in instantly would make your application more convenient. Also consider that if your application offers a functionality to recover accounts of users who have lost their passwords by sending an reactivation/password e-mail (and I'm pretty sure it does), you already assume the user is able to keep their e-mails away from snoopy folks, so why not log them in after activating?
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