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As DJ says, you need to make sure that HTML is enabled in each forum. If newbb1 is like the current version (CBB 3.08) then you'll need to do this for each forum individually.
You can get CBB 3.08 from DJ's site here:
http://xoopsforge.com/modules/wordpress/index.php/get-latest-xoops-modules/You will also need the latest Frameworks and xoopseditors. You can get these from the same site.
To update:
1. Delete the current newbb directory from your server.
DO NOT uninstall the module first as this will remove all your Forums/posts, etc. Then......
2. Upload the new stuff
exactly as follows:
xoops_root/class/xoopseditor
xoops_root/Frameworks
xoops_root/modules/newbb (CBB's directory is still called newbb)
Be patient; these are quite large uploads, especially the xoopseditor package.
3. Login as Admin, go to System>Modules and update the newbb module.
This will give you CBB 3.08
and preserve your exisiting Forums and posts
As always, backup your database before doing something as significant as this.