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SOLVED***SOLVED***SOLVED***
My problem was due to all of the users being "magically" deleted from the "Groups". In other words, me...being the Admin/Webmaster was deleted as well as everyone who registered prior to July 3rd, 2007.
People like Bandit-X who registered afterwards where allowed to log in as they were automatically placed in the Registered User group.
From what I read on another forum, one of the causes of this is switching how people register and are approved for the site. In my case, I did not change this setting. But I did delete some *spammmers* that had recently registered. Maybe this is a problem in 2.2.X branch of XOOPS?
I would like to thank everyone who helped me solve this problem. You guys are the best!!!!!!
I wish I could remember where I found the documentation for the fix of the "Webmaster being deleted" but think it was on the Dutch XOOPS site.