New subscriber can't create directory listings

I created a test user so that I could do some documentation for my site.

I am using both the Directory and the Classifieds plugins with the Blogs MU (child theme) on WordPress 3.5 All Plugins and Themes are up to date.

The new user is assigned the Subscriber level and both Directory and Classifieds are set exactly the same, i.e. the assigned capabilities to subscriber are to add and edit listings

If I look at the user profile from the admin account it shows:

Additional Capabilities: create_classifieds, create_listings

When I am logged in as the new user (subscriber) I can create classifieds but not directory listings. Instead of going to the new listing page it goes to the actual directory listing.

If I am logged in as Admin I can create directory listings without any issue.

I'm sure it must be a simple setting that I have overlooked but I have compared my settings for Classifieds and Directory and they appear to be identical.

Thanks!
Ian.