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I'm having similar problem as jon has described, but I have given myself all the group permissions and yet cannot select anny users to be able to edit them. The webmaster is the one active user and there are two inactive users I want to activate. No users appear on the 'List' link, not even the active webmaster.
I can see the usernames of the inactive users in 'Find Users' but when clicking on the name I get 'no user selected'