Well Tim my problem is certainly odd, and not only that but it extends even further. Both of the settings you told me are set up correctly. I have managed to pinpoint the source of the problem, I have to say I am really confused.
First of all I have to say that after I observed this I immediately made a post but unfortunatelly when I started looking at this I noticed that it has to do with the language pack I am using.
When I use my own lang pack, from 1.5.2, with my own translations which I made and I converted it to utf8 for the update to 1.6, the editor doesn't show up in any resource, activity, block etc. literally my entire site. This is when I use mozilla, when I use IE6 and in some resources I use, not all, and only in the first page of the site the edit screen of each resource doesn't open at all, just stays blank.
Now when I use the lang pack from moodle, which is el_utf8 folder the same thing happens in both browsers .
When I am using the en_utf8 lang pack everything works great!!!!!!!!!
It appears that even with the downloaded version of the el lang pack the problem occures not only with my own translated/converted lang pack.
Why would the lang packs have any effect on the site besides the translations? I am really stuck with this, I don't dare even to think to upgrade my production site.
I hope I am making sense and you can understand my problem.
Panayiotis.
PS: My local installation is:
Apache 2.0.54,
MySql 4.1.20, php 4.4.2, moodle 1.6+ (which I downloaded today) and MS Windows XP SP2