I had the missing "local invocation" from the drop down box in phpAdsNew too. After reading here and at the PAN forums i discovered it was because i did not have the correct exact url in my config.inc.php file.
Before i corrected that i would just get the
<!-- BEGIN ad 12345678 --><!-- END ad 12345678 -->
in the soruce code of my web page. As soon as i corrected the URL in the config file i had local invocation and the banners displayed fine.
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