It looks like a nice service, it was just a few rough edges in the first 60 seconds that put my back up.
Make it clear registration is required (or not - am still not clear how long I can duck it for - I'd actually say if it's needed make me do it straight away so I'm clear on that) and show the privacy policy up front and it's would be nice.
Out of interest why do you demand registration? Not being argumentative, just curious.
The reason why we decided to require a registration on the first page is that many visitors started playing with the generator and had no way to register (and to stay up to date) before completing the second step.
This caused confusion and many left the website right after reaching the first step.
So we decided to place the registration on the first generation page, something we did very quickly two days before the launch (happened one week ago).
The fact that it was a quick&dirty move caused part of the issues that you suggested to fix :)
About skipping the registration, you can easily do it by clicking the 'x' on the registration box :)
Thanks for the feedback :)