My proposal is that we go by the honors system and that if a poster becomes a problem he or she will lose their editing privileges for a short time. On the second offense, these privileges are revoked permanently. To my fellow board members--what do you think of this system?

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The problem with that is it's more work for the mods (potentially a lot more) and is open to abuse or the appearance of abuse. Personally I don't see the problem with posting corrections/amendments after the fact... works just fine on usenet. Probably the best argument in favour of the status quo is that if you make a new post correcting an error or updating a for sale thread, it shows up as a new post which alerts everyone who's been following the thread that things have changed... editing an old post will only be noticed by the poster and thread necromancers.