Moderate posts/threads PLEASE HELP!!

[Chachacha]

Last night I created a new forum for mods/admins to discuss issues in private. I had to set special permissions for this. Now when regular members try to post in the normal forums, their posts/threads are moderated. I checked the perms for these forums and everything seems fine.

In the category for the forums, I looked in the perms for regular members and this is what I have:

Follow Forum Moderation Rules
If no, posts are always placed into moderation queue
(This is set to YES)
It is the same for the actual forums under the category.
Is this correct? Shouldn't it be set to YES in order to NOT require moderation?

In the perms for each forum I looked at these settings and heres what I have:

Moderate Posts
(Require moderator validation before new posts are displayed) NO

Moderate Threads
(Require moderator validation before new threads are displayed) NO

They are both set to NO. So why are my members still required to have their posts/threads validated first?