It looks like the Improved Profiles section is displaying theTerms of Service that you have enabled in Joomla, probably the 'User - Profile' plugin.
Yes, Joomla also provides Captcha settings. You will have to set up the options in Users > Users Manager > Options button and turn on the appropriate Joomla captcha plugins.
Either way, both of these are controlled by what you have enabled in Joomla, not SCLogin, since all our module is doing is redirecting to the Joomla Users component for the registration view when you hit the Register button.
-Melissa