It's been a while since I had the opportunity to use Active Forums. Somehow in my hazed memory I remember the ability to moderate the Topic 1st level. But on replies to the topic and such could be left to non moderated free flow.

Is this a case of too much code red, vodka, and late nights or is it a feature of an enhanced version. I am using AF 4.3.6.0 Express Edition this time...

I don't think this is possible in the current version. You can completely restrict the ability to create or reply, but not moderate only the original post.

Is something wrong? Users are submitting posts for discussion but the form isn't proceeding anywhere. On this site we are sent to a "This posts has been sent for review" screen with the option to the browse the forums again. On my installation users are clicking submit and it stays there with their original content in view.

This can happen if you enable moderation but do not select any templates (Specifically PostPending)