Everything seems to work fine for the Administrator user on this site.
I just created an "Author" level user called "test". When the user logs in, I'm able to create and publish a new post using the "new post" item in the dropdown at the top.
When I click "Posts" from the sidebar though, I get a 301 redirect straight to the homepage of the site.
I can view drafts from the link in the dropdown at the top.
I'm able to view the Trash, Drafts, Published, and "All" posts, but not "Mine". This also does a redirect to the homepage.