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OK after 27 views and no replies I received help from my buddy Chris who actually manges my daughters Gymnastics office. He is a XOOPS head also. So after all, I guess the internet is not all it is cracked up to be. Here is the fix:
I actually had created a new group and moved several people into it that I knew I could trust so I would not have to review there post. Like a bozo, I didnt realize that I needed to go check every little box for the group permissions (missed that one). So once someon logged in in that group, volia the had less rights then an anonymous poster. There you have it.