Moderation irregularities on node submission

I am using Modr8 to moderate blog posts. Some of my users have permission to post blogs.

The setup uses Author Taxonomy to let the chooser pick the "Author" the node will have a byline from. It also uses the WYSIWYG module with TinyMCE for the text-areas, not that these make any difference, but I want to be thorough.

Anyway, when a blog posting user picks an author's name from the taxonomy list, if it isn't the same as the logged in user, when the node is submitted they get an "Access Denied" page — and the node is still sent into moderation (with the author they picked).

Here is the error, showing an "Access Denied on the supposedly resulting node page:
1270241214|access denied|255.255.255.255|http://kpbj.com/technology_talk/blog/2010-04-02/test_blog_post_from_dee|http://kpbj.net/node/add/blog|5||node/16177

If they pick their own login name from the author taxonomy, then the node goes into moderation as usual with the correct result page shown, telling them the node was put into moderation.

That isn't all... even though a person may be getting posts into the moderation queue, and they are showing up there, no emails are being sent out. No PHP error is reported on that either.