I guess you still haven't RTFM.
The notes on the groups page:
Pub. Upl. approval (1)
(1) Uploads in a public album need admin approval
If you set this to yes, you must approve uploads.
Priv. Upl. approval (2)
(2) Uploads in an album that belong to the user need admin approval
If you set this to yes, you must approve uploads.
From the documentation:
If "priv. upl. approval" is set to NO, files uploaded by members of the group in albums created in their own gallery won't need to be approved by the admin.
So....this would also apply to pub. upl. approval, right?
The group control panel enables you to control the upload experience of any group.
Upload form configuration lets you select the type of upload form a group may use. Four form types are currently available.
* Single file uploads only - The group may not use advanced uploading features. They may upload one file at a time.
* Multiple file uploads only - The group may upload multiple files at one time.
* URI uploads only - The group may only upload files using URIs. Acceptable URIs must begin with 'http://' or 'ftp://'.
* File-URI - The group may upload files using file upload boxes and URIs.
User may customize number of upload boxes? allows the user to select the number of upload boxes for an upload.
Maximum/exact number of file upload boxes controls the number of file upload boxes presented to the user. If the user may customize the number of boxes, this setting serves a maximum limit for the number of boxes he may request. Otherwise, this setting determines the number of boxes that will appear on the upload form.
Maximum/exact number of URI upload boxes is the same type of control as Maximum/exact number of file upload boxes, but it controls the presentation of URI upload boxes.