I just installed the new version from scratch on a new site. The only problem I encountered was seeing the following at the top during a final part of the installation:

Parse error: parse error, unexpected $ in /nfs/cust/1/02/30/803201/web/ubbthreads/install/install_styles.php(35) : eval()'d code on line 1

Parse error: parse error, unexpected $ in /nfs/cust/1/02/30/803201/web/ubbthreads/install/install_styles.php(42) : eval()'d code on line 1

I'm not sure what that is about since it's not an evaluation copy, I paid for it.

The install location is at http://www.toledobend.com/ubbthreads

The only problem I noticed so far is with the mood images. Notice how one of the images is : WS_FTP.LOG
Can I go into my mood images via ftp and delete that out of there?

yes, you can delete that file.

Your FTP software must be wsftp to find WS_FTP.LOG in your folders. I use the same software. You might want to turn off the log feature in wsftp. I use this myself and it caused problems with the .log file for the captcha feature.
The log feature in wsftp creates a .log file to track FTP uploads and downloads. I would advise that you view your folders and delete them.

Ok, thanks for letting me know.

Well, the last step of the install procedure is to delete the install directory; considering this error is in the install directory, and you're installed; you can safely delete the directory to resolve the error.