I looked at the code, and I changed this line:
if ($config['inline_anon'] == "yes") {
to this:
if (($config['inline_anon'] == "yes") && ($Groups != "-4-")) {
It works fine now. The inline_anon variable isn't much but a way to toggle this feature on/off though. I am guessing something changed in one of the versions prior to 6.3.2 to prevent the inline_anon feature from working right. <shrug> I dunno. Anyway, ericgtr, try this out. It solved my problem, and I was having the exact same problem that you were (with inline images only working if inline_anon was set to 'yes').