What you gave me didn't work. I finally figured it out though.

Here's what I put to make it work the way it should (by using Firefly's code, too). The line "and $bbuserinfo[canreportposts]==1" needed to go in the second part of the code, not the first.
PHP Code:
if ($post[userid]==$bbuserinfo[userid] or ($bbuserinfo[usergroupid]=="5" or $bbuserinfo[usergroupid]=="6" or $bbuserinfo[usergroupid]=="7")) {
eval("\$post[editpost] = \"".gettemplate("postbit_editpost")."\";");
} else {
$post[editpost]="";
}
if ($post[userid]!=$bbuserinfo[userid] and $bbuserinfo[canreportposts]==1) {
eval("\$post[report] = \"".gettemplate("postbit_report")."\";");
} else {
$post[report]="";
}