I found it.
I was able to locate this in phrase manager as well and change it.
I still can't get it to not allow certain user groups to not be able to attach photos in PM.
Also I'm having another issue but can't remember now.
It appears that all groups can attach images to PM regardless of the groups being excluded. I want only paid members to be able to use this feature on my site, i exclude registered users but they still can use feature.
When a new member tries to send a PM and I require a post count, the member...
additional
attachments
branding
business
cache
config.php
count
datastore
feature
free
images
issue
members
more
new
only
permissions
php
phrase
post
test
text
url
user
usergroups