Images Showing Inline for Some not All

[Uesque]

I've been searching for the answer for about an hour to no avail. I have inline images turned on and thumbnails turned off and most people can see the images just fine, but some see only a link and when they click it they get :

"you do not have permission to access this page. This could be due to one of several reasons:

1. Your user account may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
2. If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation."

I'm missing a setting somewhere but I'm stumped. Thoughts?

--------------- Added [DATE]1207243249[/DATE] at [TIME]1207243249[/TIME] ---------------

More information. I set up a dummy user so I could see it for myself. The users can see images attached by an admin or moderator, but not by a regular user. The admins and mods can see the images attached by a regular user, but the other regular users can't.