Is this with AIM or ICQ? For these protocols I believe Pidgin gets the setting from the server, and the value that we get from the server takes precedence over the local value. I see two likely scenarios: 1. You're signed into this account from another location, and the other location is setting the privacy setting to "block only users below" 2. Changing the privacy setting in Pidgin isn't actually working for whatever reason (possibly a bug in Pidgin?). You can try to check if this is happening by opening the debug window (Help->Debug Window) then changing your privacy setting. I think it'll print some sort of cryptic error message if it fails.
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