Can you enable the "Enable Debugging" setting in the JFBConnect -> Configuration area and let me know if any messages are shown after the loop is over (or you reload the page).
Additionally, can you tell me:
* Is that happening with all users that try to register with an already taken email, or just with one account?
* Do you have the "Automatically link users by email" setting enabled or disabled? That will help narrow down what JFBConnect could be trying to do.
Thanks,
Alex