That's very strange. It shouldn't be permissions as basically the graemlin selection is built by querying the database (basically returns the results that you posted). So the graemlins are definitely in the database properly.
There are only 2 things that really make this work. One is the ubbt.inc.php file. Around line 1574 is the instant_ubbcode() function and that queries the database, grabs the graemlins and stuffs them all into $graemlinlist. Then the ubbt_instant_ubbcode.tmpl prints them out. So it seems one of these isn't doing their job properly.
Since we're still beta we'll see if anyone else ends up with this problem. If not then we'll probably need a trouble ticket on this one so we can ftp in and take a peak around.
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Rick Baker
UBBThreads developer