I have googled and found all the suggested solutions. Changing permissions, changing default assignee and nothing has worked, the assignee always reverts back to the project lead. As i stated, I have even changed the default assignee to 'unassigned' and it still places the project lead as the assignee, even if I assign it to someone else.
Something to consider, I created a new project and then an issue for that project for testing and I was able to assign to anyone, is there some secret setting I need to change on an existing project to be able to assign it to anyone?