...is it still okay to have people agree to them when registering and use the software for free?
I know admins can't monitor everyone's posting, but I know someone who uses Simple Machines V 2.0.2 and herself posts "material which is false, defamatory, inaccurate, abusive, vulgar, hateful, harassing, obscene, profane, sexually oriented, threatening, invasive of a person's privacy, adult material, or otherwise in violation of any International or United States Federal law" -- probably about two-thirds of these apply. I actually considered filing a lawsuit based on some demonstrably false and libelous things that she and others were posting, but decided to see what people here think. (And no, this isn't just one of those "someone was mean on the Internet, let's go get them!" things. It's a little more intrusive and damaging than your standard flame war.)
Obviously we have no power over what is posted on anothers forum.
If there is adult material then it would depend on whether the hosts permit it.
If this were to happen on the ones I own then the person responsible would be sent to pasture with no warnings beforehand.
I'm confused... are you reporting a user on THIS forum or a user who has set up her own forum and is doing things which you disagree with?
Our only "terms of service" for using our software is that the forum owner may not distribute the software or remove the copyright in versions prior to 2.0 (final) and must keep the license file and copyright statements in the code for versions after (and including) 2.0.
We have no contact with, nor control over sites which may choose to use our software.
Nor do we have any responsibility to police such sites.
If you have an issue with improper behavior, then approach the site owner (use http://who.is to find that information) or the site's hosting service.
If there is something illegal going on, then inform your appropriate law enforcement group.
The Terms of Service in agreement.txt, as shipped with the forum code, are suggested guidelines. A site owner is free to change the terms -- or ignore them. Simple Machines has no control over such behavior. If your friend keeps those terms in the agreement and then ignores them herself, she's a twit. If she's libeling you, it may or may not be worth the effort to take legal action against her. Only you and your lawyer can decide that. Otherwise just ignore her forum.