Sorry about that. I do my testing on my laptop, and don't have ImageMagick or GD2 installed. I never use captcha on my Website, so I never thought to install either of those locally. Anywho, I made some changes that should fix it. Here are the entire instructions with the changes implemented.

Open up your copy of ubbthreads.php in the root folder.

find:
PHP Code
	 // Does user have to be logged in?
		if (!isset($user['USER_ID']) || !$user['USER_ID']) {
			if (array_get($init, 'regonly', 0) == 1) {
				$fatal_error = true;
				$fatal_error_msg = "FATAL_NOT_LOGGED";
			} // end if
		} // end if
replace with:
PHP Code
	 // Does user have to be logged in?
		if (!isset($user['USER_ID']) || !$user['USER_ID']) {
			if (($ubb != "newuser") && ($ubb != "faq") && ($ubb != "boardrules") && ($ubb != "login") && ($ubb != "logout") && ($ubb != "start_page") && ($ubb != "adduser") && ($ubb != "captcha")) {
				$fatal_error = true;
				$fatal_error_msg = "FATAL_NOT_LOGGED";
			} // end if
		} // end if

find:
PHP Code
 if (isset($left_column_data['template'])) {
		smartyDisplay($left_column_data);
	} // end if
	if (isset($smarty_display['body'])) {
		// Need to set graemlin url based on the user's style
		$smarty->register_outputfilter("graemlin_url");
		smartyDisplay($smarty_display['body']);
	} // end if
	if (isset($right_column_data['template'])) {
		smartyDisplay($right_column_data);
	} // end if
replace with:
PHP Code
 if ((isset($user['USER_ID'])) && ($user['USER_ID'])) {
		if (isset($left_column_data['template'])) {
			smartyDisplay($left_column_data);
		} // end if
	} // end if
	if (isset($smarty_display['body'])) {
		// Need to set graemlin url based on the user's style
		$smarty->register_outputfilter("graemlin_url");
		smartyDisplay($smarty_display['body']);
	} // end if
	if ((isset($user['USER_ID'])) && ($user['USER_ID'])) {
		if (isset($right_column_data['template'])) {
			smartyDisplay($right_column_data);
		} // end if
	} // end if