[Wayne Luke]

Actually it only tries to determine if the IP should be shown if the user is a moderator. If they are it will follow whatever settings are made under options.

If you look, the first line includes a call to "ismoderator()" this function returns true if the user is a moderator. You can find it in admin/functions.php. Makes it a lot easier to find appropriate moderator permissions without trying to remember user groups and permission levels or whatnot.