A: 

I sometimes have trouble with just using #(obj).submit(). .bind seems to be more reliable. You could do something like this I think (untested):

$('#newUserForm').bind('submit', function() {
     var FormName = $(this).attr('name');
     if (xajax_validateEmailAddressAndUsername(xajax.getFormValues(FormName))) {
          $(this).submit();
     }
     else {
         alert("Oh no!"); 
         return false;
     }
}
Electronic Zebra
this code gets stuck in an infinite recursion... But I think you are on to something. My question is: what should the xajax response be for the if statement to avaluate to TRUE?
Onema
I see why it gets stuck infinitely, I was in a rush when I wrote that response. The if is currently returning true and resubmitting. Try using $.post rather than $(this).submit()http://docs.jquery.com/Ajax/jQuery.post
Electronic Zebra