Only if it is placed under the piece of code I listed above. If you use showwarnlink instead, then the problem doesn't exist.
I was previously using an older version of the warning system and upgraded to the latest one in an effort to fix the issue. In the process, I noticed that I had reversed the conditionals in the templates [i.e. using showviewwarnlink to show the warn link / using showwarnlink to show the view link] when I first installed the hack, which was able to help me discover the bug. In the default setting, it wouldn't be that you can't warn the registered users, but instead you couldn't view their warnings.
It could possibly be something wrong with my forum which doesn't show up in any other place. I just really wanted to let you know in case others came up with the issue. As I found a workaround, it's not something that needs to be fixed urgently [or even at all]. Plus we are planning on upgrading to vB3.5 soon anyways. Hopefully no one else has the issue, in which case it's all good.
Thank you for taking the time to look at it however.
Abe Babe...