A couple of things here...
Firstly, you're not actually processing any data from the database:
$qry = mysql_query($match)
or die ("Could not match data because ".mysql_error());
$num_rows = mysql_num_rows($qry);
At this point, $qry just contains a pointer to where the results are. You now need to extract the results. You could do this by adding the following:
else {
//Read row from database
$row = mysql_fetch_assoc($qry)
//Check if user account has been verified
Now, $row actually contains the data.
Your second problem is your if statement:
if (verified != "1") {
It makes no sense as it is. The values on either side of the "!=" operator should have values. "1" certainly does have a value but "verified" doesn't.
$qry contains the details you pulled back from the database, so if that row contains a field called "verified", you ought to be able to replace "verified" in the equals statement with $row['verified'].
Putting all of that together, here is the new code to replace your old...
else {
//Read row from database
$row = mysql_fetch_assoc($qry)
//Check if user account has been verified
if ($row['verified'] != "1") {
echo ("Your account must be activated before you can log in, please visit the
activation page that was included in the email we sent you.");
exit;
}
For further reading on this, check out the mysql section of the PHP manual.