"Flag Friend Links" in Panels can't be activated

I digged a bit more into this and found that the function:

<?php
function flag_friend_flag_friend_links_content_type_edit_form(&$form, &$form_state) {
  // Does nothing!
}
?>

needs to be modifed a bit to work:

<?php
function flag_friend_flag_friend_links_content_type_edit_form($form, &$form_state) {
  $settings = ctools_custom_content_type_get_conf($form_state['subtype'], $form_state['conf']);
  $form_state['settings'] = $settings;

  if ($settings['custom_type'] == 'fixed') {
    return $form; // no form for this case.
  }
}
?>

1. the $form is not a reference (as seen in ctools)
2 I added a default form that renders the title overwrite as well as the argument (borrowed from ctools)

Now the form gets rendered and it saves the values. What's missing is any rendering in the panel. That's what I'm checking right now.

Rendering works too. I missed the point that sending a friend request to myself is not the primary use case. ;)

Here is a patch with my changes to the form.