No posts match your criteria…

for some reason, whenever a user is not logged in (guest), when they load the page, it says no posts matched your criteria. i dont get it. when im logged in as admin though, everything looks fine.

here is a pic of description:
http://www.iiox.com/1/other/noposts.jpg

running:

Windows Server 2003
MySQL latest version
Wordpress 2.0.1
MS IIS 6.0