With your manual edits to
modifyoptions above, the problem is, if the Admin does not allow members to email other members, these options will not show in the UserCP. I think that since the Newsletter will usually come from an Admin, the options should be available regardless of the Members being able to email each other. To correct this the <vb:if> statements should be removed (they are not included in the xml file either).
Also, IMHO, it looks better if you put a space in between the check box and the label. To do this, you just need to insert a space before the phrase. I have included the code for both items above, in the below box (this is both check boxes):
Code:
<li>
<label for="commbull"><input type="checkbox" name="commbull" value="1" id="commbull" tabindex="1" {vb:raw checked.receivebulletin} /> {vb:rawphrase receive_email_from_commbull}</label>
<input type="hidden" name="set_options[receivebulletin]" value="1" />
</li>
<li>
<label for="commbull_type"><input type="checkbox" name="commbull_type" value="1" id="commbull_type" tabindex="1" {vb:raw checked.receivebulletin_type} /> {vb:rawphrase type_email_from_commbull}</label>
<input type="hidden" name="set_options[receivebulletin_type]" value="1" />
</li>