Can't register user "foo@bar" at node ejabberd@host: not_allowed

Hi all
SuSE 9.3
ejabberd-0.9.8 (from source)
Eshell V5.4.8
no firewall, hosts on same network segment

I have managed to get ejabberd running:
ejabberdctl ejabberd@roger status
Node ejabberd@roger is started. Status: started

I started the server with this command:
erl -pa /var/lib/ejabberd/ebin -sname ejabberd -s ejabberd -ejabberd config \"/etc/ejabberd/ejabberd.cfg\" log_path \"/var/log/ejabberd/ejabberd.log\" -sasl sasl_error_logger \{file,\"/var/log/ejabberd/sasl.log\"\} -mnesia dir \"/var/lib/ejabberd/spool\"

But now when adding a user with ejabberdctl, I get a strange error:
ejabberdctl ejabberd@roger register thefish roger somepass
Can't register user "thefish@roger" at node ejabberd@roger: not_allowed

When I try to register an account using Gaim:
=INFO REPORT==== 12-Aug-2005::18:38:06 ===
I(<0.220.0>:ejabberd_listener:90): (#Port<0.348>) Accepted connection {{client,ip,add,ress},27324} -> {{server,ip,add,ress},5222}
This gives an error "host unknown" in Gaim.

Any idea what I could be doing wrong?

Thanks