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Dnn 7 (latests production release)
Add the member directory to a page. Goto settings and select filter by, profile properties.
(must be profile data in users profile for cities) enter a city that a user profile has data for. Update/save the module. The module should now show the users in that city.
What happens is: Module works properly for superusers. You can see the queryd cit profiles. but any other user in any other role cannot see the queried list. If you go back into the settings for the module and remove the 'profile property filter from the filter settings then the module functions properly (without the filter)