You are still going to have the problem of your notification emails going to spam. Best to fix that problem first: http://docs.elgg.org/wiki/Email_and_spam_filters

Hey thanks Cash!

I know the best approach is to first fix the SPAM problem, but still if I think of taking this route, skipping the user authentication part and have them directly enter their dashboard, then how do I go about it? the above part doesnt seem to be working.

Elgguser, it seems to me that you are attempting to use a hammer to turn a screw.

Your problem is not Elgg's validation process but the fact that your server appears to be badly configured to send email. This is not an Elgg problem but a server configuration issue.

There's a huge amount of information available on properly configuring email sending on your server. You can start with Cash's link and Google for more.