Patrick,
The demo site is a completely separate Joomla installation, so logging into the main sourcecoast.com doesn't log you in there. You'd need to create a new account. We erase the users from that site periodically and basically start from scratch here and there, which is why it's separate. It also helps us to prevent to many 1-time login users from registering (and testing) on this main site.
The Login/Register page can be skipped entirely if you set the User Creation mode to "Facebook User Only".. it will create an account for the user if they don't already have one and skip that page entirely. You can also enable the "Automatically link users by email address" setting which will see if there's a Joomla user with the same email and automatically link them. Then, if the user still reaches that page, they can always use the left hand side of the form to 'connect' their Facebook account to an existing one.
Yes, there are ways users can get 2 accounts on your site.. a Joomla one only and a Facebook one only. We've tried very hard to minimize that, but if the site is configured to do so or if the users don't read (or understand) the instructions, there's not much more we can do about it. If you have suggestions, we're welcome to them.
Back to the activity stream.. still not sure why it's doing that for you. We can't recreate it, which makes it difficult. I'm hoping ahonaker can let us know his site info so we can see the similarities there.
However, in the meantime, can you try going to Facebook's own demo page and see if it is detecting you logged in there:
developers.facebook.com/docs/reference/plugins/activity/
Feel free to try and set the domain to your site, or SourceCoast.com, or elsewhere, and see if you see a difference. When I'm logged into Facebook, whether here, on your site, or on the FB demo page above, it never asks me to log in. Would like to know what you see there as well since that's not connected to JFBConnect at all.
Thanks,
Alex