I am testing this on a new forum and was getting a Javascript error because of the for loop. It was hardcoded to a set amount of 15. I didn't have 15 threads yet.
Anyway, I made the following change to to the template and it eliminates it:
HTML Code:
<if condition="$vboptions['externaljs']">
<!-- show latest active threads -->
<br />
<table class="tborder" width="100%" cellspacing="$stylevar[cellspacing]" cellpadding="$stylevar[cellpadding]" border="0">
<tbody>
<tr>
<td class="thead" colspan="2">
<a style="float:$stylevar[right]" href="#top" onclick="return toggle_collapse('portal_external')"><img id="collapseimg_portal_external" src="$stylevar[imgdir_button]/collapse_thead$vbcollapse[collapseimg_portal_external].gif" alt="" border="0" /></a>
<a href="$vboptions[bburl]/search.php?$session[sessionurl]do=getnew">$vbphrase[latest_threads]</a>
</td>
</tr>
</tbody>
<tbody id="collapseobj_portal_external" style="$vbcollapse[collapseobj_portal_external]">
<script type="text/javascript" src="http://www.ridersofconquest.org/forum/external.php?type=js"></script>
<script language="Javascript" type="text/javascript">
<!--
for (x in threads)
{
document.writeln("<tr><td class=\"alt1\" width=\"100%\"><div class=\"smallfont\"><img class=\"inlineimg\" src=\"$stylevar[imgdir_button]/lastpost.gif\" alt=\"\" border=\"0\" /> <a href=\"$vboptions[bburl]/showthread.php?t="+threads[x].threadid+"\">"+threads[x].title+"</a><br /><span class=\"time\">($vbphrase[posted_by]: "+threads[x].poster+")</div></td></tr>");
}
//-->
</script>
</tbody>
<!-- show latest active threads -->
</table>
</if>
This has the added benefit of utilizing vB's maximum external records option under vBulletin Options -> External Data Provider. That way people can have the number they choose.