I'm working on a site with a need for a big FAQ thingy. Normally, I don't put any mods or changes onto live sites without getting feedback. So I'm asking...

To start the FAQ mod needs:

The ability for users with group permissions to submit FAQs for publication on the site, but submitted FAQs must be approved before they're published.

The ability to apply graphics within the FAQ

A while back I had the same problem you're facing now at my site SFFPC.NL

I decided to go PHP Wiki for FAQs, so everybody can contribute to the content (you can decide if they have to be members or not).
And another advantage of wiki based solution is you have a diff function so you can most of the time go back to an old version. So you don't need to approve anything (which I think is something you don't want to do because it uses huge amounts of time which you can invest more useful in site development).