Well,
that can't be the way it was meant
Okay, let's try again hand in hand
Disable Admin and Mods, disable view for every named other usergroup (clear field)
Enable "show on thanks" and / or "show on reply"
Then go and make a NEW hidden posting (logged in with admin-account, creating a clean new thread)
Now Log out an log in with a normal useraccount (you might have.. in fact you should...

)
then try to read that new post (don't answer and don't click on thanks)
should be hidden now.
If so, do the same the other way aroung (logged in as ordinary user, create a fresh thread hide some text in your posting)
log out and in as admin, try to read (don't answer, don't reply!)
AND??
'sid
PS if you marked "show on reply" all hidden contents in a specific thread where someone posted are visible even if they came behind.
If you have the thanksoption set to "only in first post" that's enough to see all hidden content in a specific thread (if first post is thanked)
If you have a thanksbutton in EVERY post, you need to thank every single post to show up hidden content.
(if your not enabled to see hidden content without doing anything e.g. as an admin or mod)
delete