Wrapped forum gives weird characters

Hello,
After installation of the component site becomes unsuable and i get weird charcterd when going to the site. Please take a look at www.babyhold.com and click on the forum tab on top.

this happens when i use the forum in wrapped mode. in unwrapped it loads fine.

I'll appreciate any help.

-----------------------
here is the code of the site index file after the installation.

<?php
/**
* @version $Id: index.php,v 1.9 2005/02/16 02:03:33 eddieajau Exp $
* @package Mambo
* @copyright (C) 2000 - 2005 Miro International Pty Ltd
* @license http://www.gnu.org/copyleft/gpl.html GNU/GPL
* Mambo is Free Software
*/

/** Set flag that this is a parent file */
define( '_VALID_MOS', 1 );

// checks for configuration file, if none found loads installation page
if ( !file_exists( 'configuration.php' ) || filesize( 'configuration.php' ) < 10 ) {
   header( 'Location: installation/index.php' );
   exit();
}

include_once( 'globals.php' );
require_once( 'configuration.php' );

// displays offline page
if ( $mosConfig_offline == 1 ){
   include( 'offline.php' );
   exit();
}

require_once( 'includes/mambo.php' );
if (file_exists( 'components/com_sef/sef.php' )) {
   require_once( 'components/com_sef/sef.php' );
} else {
   require_once( 'includes/sef.php' );
}
require_once( 'includes/frontend.php' );

/*
Installation sub folder check, removed for work with CVS*/
if (file_exists( 'installation/index.php' )) {
   include ('offline.php');
   exit();
}
/**/
/** retrieve some expected url (or form) arguments */
$option = trim( strtolower( mosGetParam( $_REQUEST, 'option' ) ) );
$Itemid = intval( mosGetParam( $_REQUEST, 'Itemid', null ) );
$database = new database( $mosConfig_host, $mosConfig_user, $mosConfig_password, $mosConfig_db, $mosConfig_dbprefix );
$database->debug( $mosConfig_debug );
$acl = new gacl_api();

if ($option == '') {
   if ($Itemid) {
      $query = "SELECT id, link"
      . "\n FROM #__menu"
      . "\n WHERE menutype='mainmenu'"
      . "\n AND id = '$Itemid'"
      . "\n AND published = '1'"
      ;
      $database->setQuery( $query );
   } else {
      $query = "SELECT id, link"
      . "\n FROM #__menu"
      . "\n WHERE menutype='mainmenu' AND published='1'"
      . "\n ORDER BY parent, ordering LIMIT 1"
      ;
      $database->setQuery( $query );
   }
   $menu = new mosMenu( $database );
   if ($database->loadObject( $menu )) {
      $Itemid = $menu->id;
   }
   $link = $menu->link;
   if (($pos = strpos( $link, '?' )) !== false) {
      $link = substr( $link, $pos+1 ). '&Itemid='.$Itemid;
   }
   parse_str( $link, $temp );
   /** this is a patch, need to rework when globals are handled better */
   foreach ($temp as $k=>$v) {
      $GLOBALS[$k] = $v;
      $_REQUEST[$k] = $v;
      if ($k == 'option') {
         $option = $v;
      }
   }
}

/** do we have a valid Itemid yet?? */
if ( $Itemid === null ) {
   /** Nope, just use the homepage then. */
   $query = "SELECT id"
   . "\n FROM #__menu"
   . "\n WHERE menutype='mainmenu'"
   . "\n AND published='1'"
   . "\n ORDER BY parent, ordering"
   . "\n LIMIT 1"
   ;
   $database->setQuery( $query );
   $Itemid = $database->loadResult();
}

/** patch to lessen the impact on templates */
if ($option == 'search') {
   $option = 'com_search';
}

/** mainframe is an API workhorse, lots of 'core' interaction routines */
$mainframe = new mosMainFrame( $database, $option, '.' );
$mainframe->initSession();

// loads english language file by default
if ( $mosConfig_lang == '' ) {
   $mosConfig_lang = 'english';
}
include_once ( 'language/'.$mosConfig_lang.'.php' );

//MAMBOHACKS.COM
global $sc, $context;
if (file_exists($mosConfig_absolute_path."/administrator/components/com_smf/config.smf.php"))
   require_once ("administrator/components/com_smf/config.smf.php");
if (file_exists($smf_path."/SSI.php"))
   require_once ($smf_path."/SSI.php");
$sc = &$context['session_id'];
$_SESSION['USER_AGENT'] = $_SERVER['HTTP_USER_AGENT'];

// frontend login & logout controls
$return = mosGetParam( $_REQUEST, 'return', NULL );
$message = mosGetParam( $_POST, 'message', 0 );
if ($option == "login") {

   //MAMBOHACKS.COM
   require_once ($mosConfig_absolute_path."/components/com_smf/smf.php");
   doMamboSMF();

   $mainframe->login();

   // JS Popup message
   if ( $message ) {
      ?>
      <script>
      
      </script>
      <?php
   }

   if ($return) {
      mosRedirect( $return );
   } else {
      mosRedirect( 'index.php' );
   }

} else if ($option == "logout") {
   $mainframe->logout();

   //MAMBOHACKS.COM
   global $context;
   mosRedirect( 'index.php?option=com_smf&Itemid=28&action=logout&sesc='.$context['session_id'] );

   // JS Popup message
   if ( $message ) {
      ?>
      <script>
      
      </script>
      <?php
   }

   if ($return) {
      mosRedirect( $return );
   } else {
      mosRedirect( 'index.php' );
   }
}

/** get the information about the current user from the sessions table */
$my = $mainframe->getUser();

/** detect first visit */
$mainframe->detect();

$gid = intval( $my->gid );

// gets template for page
$cur_template = $mainframe->getTemplate();
/** temp fix - this feature is currently disabled */

/** @global A places to store information from processing of the component */
$_MOS_OPTION = array();

// precapture the output of the component
require_once( $mosConfig_absolute_path . '/editor/editor.php' );

ob_start();
if ($path = $mainframe->getPath( 'front' )) {
   $task = mosGetParam( $_REQUEST, 'task', '' );
   $ret = mosMenuCheck( $Itemid, $option, $task, $gid );
   if ($ret) {
      require_once( $path );
   } else {
      mosNotAuth();
   }
} else {
   echo _NOT_EXIST;
}
$_MOS_OPTION['buffer'] = ob_get_contents();
ob_end_clean();

initGzip();

header( 'Expires: Mon, 26 Jul 1997 05:00:00 GMT' );
header( 'Last-Modified: ' . gmdate( 'D, d M Y H:i:s' ) . ' GMT' );
header( 'Cache-Control: no-store, no-cache, must-revalidate' );
header( 'Cache-Control: post-check=0, pre-check=0', false );
header( 'Pragma: no-cache' );

// loads template file
if ( !file_exists( 'templates/'. $cur_template .'/index.php' ) ) {
   echo _TEMPLATE_WARN . $cur_template;
} else {
   require_once( 'templates/'. $cur_template .'/index.php' );
   echo "";
}

// displays queries performed for page
if ($mosConfig_debug) {
   echo $database->_ticker . ' queries executed';
   echo '<pre>';
    foreach ($database->_log as $k=>$sql) {
      echo $k+1 . "\n" . $sql . '<hr />';
   }
}

doGzip();
?>