The instanceconfig setting is required (and then restart OBIPS) but you also need the normal OBIEE privileges to use HTML. Did you check if your application roles have that privilege? (In the OBIEE front-end admin page)
Thanks for the quick response.
I logged in as a user with BI Service Administrator rights. Wouldn't that cover all privileges? I've also checked any OBIEE front end administration privileges, and confirmed that BI Service Admin has rights to HTML markups.
Was there something I had miss?
FYI: Rebooted the whole server and everything is good again.
When you edited instanceconfig.xml did you restart the required component? Because that's a mandatory step every time you touch the config file if you expect to see the result.
I did restart the components, however, its possible that I restarted the wrong one. I did a system reboot (which should have all components covered) and the problem went away. Thanks for your help.