Topic: User can still edit his/her post when a moderator/admin edited it.
A user can still edit his/her post when a mod/admin moderates/edits it.
I've been looking into it and tested it on this post. (edited it to html instead of ftp).
I don't really know if this is intended or not.
They use it at gathering.tweakers.net, but thats kind of a big forum with 100k users and about 12 million posts.