You can't edit someone who has same or higher usergroups than you. If you're trying to edit a registered user as a moderator then ensure you only have moderator usergroup and do not have registered usergroup as it'll end up being checked against as it considers your lowest permission usergroup in the check. Examples as follows.
User A - Registered
User B - Registered, Moderator
In the above case User B can not edit User A since the lowest usergroup checked is Registered. You need to have it setup as follows.
User A - Registered
User B - Moderator
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The following user(s) said Thank You: cpm73, RebeccaWool