Panels problem when set to to in frames inside drupal page.

Hi, I am facing an issue with Phpbbforums integration whereby the panels for the bulletin board is messed up.

You can see how it looks like here:
[IMG]http://i39.tinypic.com/4zzqs7.jpg[/IMG]

I have the settings all set to default with the exception of these changes in the picture below:
[IMG]http://i40.tinypic.com/210f7eb.jpg[/IMG]

I find it strange as everything was working perfectly until I renamed the folder of www.example.com/phpBB3 into www.example.com/forums

and www.example.com/drupal/sites/all/modules/phpbbforum to www.example.com/drupal/sites/all/modules/forums and pointed it to the relevant settings under phpbbforum settings.

Right now, i'm using the default templates. And I have tried uninstalling/deleting/reinstalling phpBB3 and phpbbforum module in a new database.

Unfortunately, the same problem still persists after all these troubleshooting. Can anyone advise me where the problem may lie? Could phpbbforum integration module have affected something else that might have lead to this problem?

PS: There is a compromising solution for this, and it is to NOT set in frames to inside the drupal page. But than again, I do not believe that it was set to be this way.

Thanks
-Mok