Taking a look at this I would like to ensure that there isn't a plugin conflict here so I would like for you to temporarily disable all your non-toolset plugins and then try again.
Thanks a lot. That sorted the issue described above around the CRED edit form. Just one last thing that I need to get fixed.
When a guest access a post through the following type of URL it works fine: hidden link
But when a guest creates a post with the CRED form it cannot access the post through the following type of URL. This is the same post as in the example above but a different way of accessing it. It seems like this is the way the CRED form refers to the post after its created: hidden link
The error I get in this case is:
Oops, This Page Could Not Be Found!
The post type is linked to a content template. Not sure if this is related to the problem.