You overlooked it.
In FORUMDISPLAY Find:
<!-- Active Users in this Forum (and sub-forums) and Moderators -->
<form action="forumdisplay.php" method="get">
<input type="hidden" name="s" value="$session[sessionhash]" />
<input type="hidden" name="f" value="$forumid" />
<input type="hidden" name="page" value="$pagenumber" />
<input type="hidden" name="pp" value="$perpage" />
<table class="tborder" cellpadding="$stylevar[cellpadding]" cellspacing="$stylevar[cellspacing]" border="0" width="100%" align="center">
<tr>
<td class="tcat">$vbphrase[display_options]</td>
<if condition="$show['activeusers']">
<td class="tcat">$vbphrase[currently_active_users]</td>
</if>
<if condition="$show['moderators']">
<td class="tcat">$vbphrase[moderators]</td>
</if>
</tr>
<tr>
<td class="thead"><phrase 1="$limitlower" 2="$limitupper" 3="$totalthreads">$vbphrase[showing_threads_x_to_y_of_z]</phrase></td>
<if condition="$show['activeusers']">
<td class="thead">$totalonline (<phrase 1="$numberregistered" 2="$numberguest">$vbphrase[x_members_y_guests]</phrase>)</td>
</if>
<if condition="$show['moderators']">
<td class="thead">$vbphrase[moderators] : $totalmods</td>
</if>
</tr>
<tr valign="top">
<td class="alt1">
<table cellpadding="0" cellspacing="1" border="0">
<tr>
<td class="smallfont" style="padding-right:6px">$vbphrase[sorted_by]</td>
<td><select name="sort">
<option value="title" $sort[title]>$vbphrase[thread_title]</option>
<option value="lastpost" $sort[lastpost]>$vbphrase[last_post_time]</option>
<option value="replycount" $sort[replycount]>$vbphrase[number_of_replies]</option>
<option value="views" $sort[views]>$vbphrase[number_of_views]</option>
<option value="postusername" $sort[postusername]>$vbphrase[thread_starter]</option>
<if condition="$show['threadratings']"><option value="voteavg" $sort[voteavg]>$vbphrase[thread_rating]</option></if>
</select></td>
<td class="smallfont" style="padding-right:6px; padding-left:12px">$vbphrase[sort_order]</td>
<td><select name="order">
<option value="asc" $order[asc]>$vbphrase[ascending]</option>
<option value="desc" $order[desc]>$vbphrase[descending]</option>
</select></td>
</tr>
<tr>
<td class="smallfont" style="padding-right:6px">$vbphrase[from_the]</td>
<td><select name="daysprune">
<option value="1" $daysprunesel[1]>$vbphrase[last_day]</option>
<option value="2" $daysprunesel[2]>$vbphrase[last_2_days]</option>
<option value="7" $daysprunesel[7]>$vbphrase[last_week]</option>
<option value="10" $daysprunesel[10]>$vbphrase[last_10_days]</option>
<option value="14" $daysprunesel[14]>$vbphrase[last_2_weeks]</option>
<option value="30" $daysprunesel[30]>$vbphrase[last_month]</option>
<option value="45" $daysprunesel[45]>$vbphrase[last_45_days]</option>
<option value="60" $daysprunesel[60]>$vbphrase[last_2_months]</option>
<option value="75" $daysprunesel[75]>$vbphrase[last_75_days]</option>
<option value="100" $daysprunesel[100]>$vbphrase[last_100_days]</option>
<option value="365" $daysprunesel[365]>$vbphrase[last_year]</option>
<option value="-1" $daysprunesel[all]>$vbphrase[beginning]</option>
</select></td>
<td colspan="2" align="$stylevar[right]"><input type="submit" class="button" value="$vbphrase[show_threads]" /></td>
</tr>
</table>
</td>
<if condition="$show['activeusers']">
<td class="alt1"><div class="smallfont">$activeusers</div></td>
</if>
<if condition="$show['moderators']">
<td class="alt1"><div class="smallfont">$moderatorslist </div></td>
</if>
</tr>
</table>
</form>
<!-- End Active Users in this Forum (and sub-forums) and Moderators -->
REMOVE IT or comment it out. That will remove the Display Options.
Now find:
<if condition="$show['threadslist']">$forumrules</if>
REMOVE IT or comment it out. That will remove the Posting Rules.