Peter,
It seems that when I add a new file to a folder the Approve functionality is working fine. I added the file as Administrator and Administrator does not have Approve access. It seems that when I upload a new version the Approve checkbox is automatically checked even though the role that is adding it does not have Approve rights. If you miss that checkbox the file is released as approved and circumvents the approval workflow. Is this just happeneing because I am logged in as Admin? When I add a new file as Admin the checkbox is not checked by default.
Also, when I upload a new version of the file, people without Edit rights see the old version until the new one is approved. That is expected behaviour and I am glad it works that way. However, in my case the old version of the file is showing up with a blank name. I can download the file but obviously it looks strange without a name. Are you able to replicate this?
The steps I took were as follows:
1. Upload new file.
2. Approve new file
3. Upload new version of the file and uncheck Approval
4. Browse to file with an account that does not have Edit rights
5. Name of file is blank and the file appears at the top of the list. The correct version and name are showing in the Details pane.
Brian