editing post moves back to top.
 

Is there anyway I can make it so if someone edits their post to update it, the thread will be moved back to the top of the list rather than people "bumping" with a new post?

You want only the thread to jump up on the forumlist?

In my opinion that would give a bit of complication when people update their post to fix something, and the thread gets bumped up and marked as unread, but when they look, they realize that they already read everything in the thread...

You'd have to update the row in the thread table in the database when you save the edited post.