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hi cityconnection,
you can do the same with the function for creating a listing. It is just a few lines above (around line 152)
find
function va_disable_admin_listing_creation() {

and add
...

The plugin http://wordpress.org/extend/plugins/theme-my-login/ works pretty well too. There is a pagination issue on the frontpage though. But there is a workaround...

This is what I am using in the meantime.
http://www.binarymoon.co.uk/projects/bm-custom-login/

You can also pull this off using gravity forms with user-registration add-on.

I'm guessing, but that may be because of padding specified in the header.php or style.css somewhere.