GiJoe, I tossed it on (this is still a beta site) and just updated my system to the 2.9 alpha. Looks like permissions are "sticking" now as expected. Not only that but block/group administration works as well.

I've noticed one thing, I have a block to show recent photos with 6 pics in 3 colums. It has simply changed to show 2 pictures total in 2 columns. I changed nothing. I'll see if I can "reset it" somehow or try a few patterns to see if I can get you more data.

Update: I tried a few more things, including deleting and readding the block. It limits me to a maximum of 2 pictures regardless of columns. I'm having my users test to see if they can now post pictures.

Cheers!