Approval (Workflow) process Error

Hi all KM Gurus

I am new to Approval process in KM.

I have enabled the approval process on folder say XYZ.

I gave the full control to user1 and only write permission to user2.

In service permissions I gave full control to user1 and approval administrativr privilege to user2.

Now when user2 uploads any document under XYZ folder, in the documents context menu he unable to view the submit to approval option.

But that option for the same file is available to User1.

So what is wrong with my settings?

Please help me out.

(Points will be awarded for helpful answers)