I don't know about there being a problem with the settings, but if you just add something like *****then your code******** it should show just the code
tags, but instead of showing the code the preview displayed the result.
see [URL="http://ilovemycockapoo.com/showthread.php?p=95923#post95923"]here[/URL]
If I insert the example code as it should be written within the [code] tags I see the actual pitapata, not the actual code that should be used
[CODE][url=http://pitapata.com][img]http://pdgf.pitapata.com/8R0Qm8.png[/img][/url]
tags it should show the code, but executes the code instead.
Jon