[Theater]

I narrowed it down to this code you're missing:

<if condition="$show['member'] AND     $notifications_total">
<!-- notifications menu -->
<div class="vbmenu_popup" id="notifications_menu" style="display:none">
    <table cellpadding="4" cellspacing="1" border="0">
    <tr><td class="thead" colspan="2">$vbphrase[your_notifications]</td></tr>
    $notifications_menubits
    </table>
</div>
<!-- / notifications menu -->
</if>

Entire template with it:

<br />

<!-- breadcrumb, login, pm info -->
<table class="tborder" cellpadding="$stylevar[cellpadding]" cellspacing="$stylevar[cellspacing]" border="0" width="100%" align="center">
<tr>
    <td class="altbg" width="100%">
        &nbsp;
    </td>
<!--<UKBL Iframe Ticker Start>----------------------------------------------------------------------->

<td class="altbgcolor">
<div align="right">
<!--For full source code and more DHTML scripts, visit http://www.dynamicdrive.com-->
<!--This credit MUST stay intact for use-->
<iframe id="tickermain" src="http://waltdisneyboards.com/exfile.htm" width=200 height=90 marginwidth=0 marginheight=0 hspace=0 vspace=0 frameborder=0 scrolling=no></iframe>
</DIV>
</td>
<!--<UKBL Iframe Ticker End>----------------------------------------------------------------------->
<td class="altbgcolor">
<a href="http://www.waltdisneyboards.com/external.php?type=rss2"><img src="http://www.waltdisneyboards.com/images/misc/feed-icon.gif" border="0" alt="WDB News Feed" />
<if condition="$show['member']">
    <td class="altbgcolor" nowrap="nowrap">
    <div class="smallfont">
        <strong><phrase 1="$bbuserinfo[username]" 2="member.php?$session[sessionurl]u=$bbuserinfo[userid]">$vbphrase[welcome_x_link_y]</phrase></strong><br />
        <phrase 1="$pmbox[lastvisitdate]" 2="$pmbox[lastvisittime]">$vbphrase[last_visited_x_at_y]</phrase>

        <if condition="$show['notifications'] AND $show['popups']">
            <div><span id="notifications"><a href="usercp.php$session[sessionurl_q]">$vbphrase[your_notifications]:</a> <strong>$notifications_total</strong></span></div>
            <script type="text/javascript"> vBmenu.register("notifications"); </script>
        <else /><if condition="$show['pmstats']">
            <div><phrase 1="$vbphrase[unread_x_nav_compiled]" 2="$vbphrase[total_x_nav_compiled]" 3="$session[sessionurl_q]">$vbphrase[private_messages_nav]</phrase></div>
        </if></if>

        <if condition="$show['pmwarning']"><div><strong><phrase 1="$vbphrase[pmpercent_nav_compiled]">$vbphrase[your_pm_box_is_x_full]</phrase></strong></div></if>
<if condition="$show['navbar_credits']">
            <div>$vbphrase[credits]</a>: <strong><span id="navbar_credits">$GLOBALS[navbar_credits]</span></strong> [<a href="credits.php?$session[sessionurl]do=banking">$vbphrase[check]</a>]<if condition="$show['credits_purchase']"> [<a href="credits.php?$session[sessionurl]do=manage#purchase">$vbphrase[purchase]</a>]</if></div>
        </if>
    </div>
    </td>
<else />
    <td class="altbgcolor" nowrap="nowrap" style="padding:0px">
        <!-- login form -->
        <form action="login.php?do=login" method="post" onsubmit="md5hash(vb_login_password, vb_login_md5password, vb_login_md5password_utf, $show[nopasswordempty])">
        <script type="text/javascript" src="clientscript/vbulletin_md5.js?v=$vboptions[simpleversion]"></script>
        <table cellpadding="0" cellspacing="$stylevar[formspacer]" border="0">
        <tr>
            <td class="smallfont" style="white-space: nowrap;"><label for="navbar_username">$vbphrase[username]</label></td>
            <td><input type="text" class="bginput" style="font-size: 11px" name="vb_login_username" id="navbar_username" size="10" accesskey="u" tabindex="101" value="$vbphrase[username]" onfocus="if (this.value == '$vbphrase[username]') this.value = '';" /></td>
            <td class="smallfont" nowrap="nowrap"><label for="cb_cookieuser_navbar"><input type="checkbox" name="cookieuser" value="1" tabindex="103" id="cb_cookieuser_navbar" accesskey="c" checked="checked" />$vbphrase[remember_me]</label></td>
        </tr>
        <tr>
            <td class="smallfont"><label for="navbar_password">$vbphrase[password]</label></td>
            <td><input type="password" class="bginput" style="font-size: 11px" name="vb_login_password" id="navbar_password" size="10" tabindex="102" /></td>
            <td><input type="submit" class="button" value="$vbphrase[log_in]" tabindex="104" title="$vbphrase[enter_username_to_login_or_register]" accesskey="s" /></td>
        </tr>
        </table>
        <input type="hidden" name="s" value="$session[sessionhash]" />
        <input type="hidden" name="securitytoken" value="$bbuserinfo[securitytoken]" />
        <input type="hidden" name="do" value="login" />
        <input type="hidden" name="vb_login_md5password" />
        <input type="hidden" name="vb_login_md5password_utf" />
        </form>
        <!-- / login form -->
</if>
</tr>
</table>
<!-- / breadcrumb, login, pm info -->

<br />
$vbnews_ticker
<br />
<if condition="$show['notices']">
    <table class="tborder" cellpadding="$stylevar[cellpadding]" cellspacing="$stylevar[cellspacing]" border="0" width="100%" align="center">
    <tr>
        <td class="thead">$vbphrase[notices]</td>
    </tr>
    <tr>
        <td class="alt1">$notices</td>
    </tr>
    </table>
    <br />
</if>

<if condition="$show['forumdesc']">
    <table class="tborder" cellpadding="$stylevar[cellpadding]" cellspacing="$stylevar[cellspacing]" border="0" width="100%" align="center">
    <tr>
        <td class="alt1" width="100%"><strong>$foruminfo[title]</strong> <span class="smallfont">$foruminfo[description]</span></td>
    </tr>
    </table>
    <br />
</if>

<if condition="$show['popups']">

<!-- PAGENAV POPUP -->
    <div class="vbmenu_popup" id="pagenav_menu" style="display:none">
        <table cellpadding="4" cellspacing="1" border="0">
        <tr>
            <td class="thead" nowrap="nowrap">$vbphrase[go_to_page]</td>
        </tr>
        <tr>
            <td class="vbmenu_option" title="nohilite">
            <form action="$vboptions[forumhome].php" method="get" onsubmit="return this.gotopage()" id="pagenav_form">
                <input type="text" class="bginput" id="pagenav_itxt" style="font-size:11px" size="4" />
                <input type="button" class="button" id="pagenav_ibtn" value="$vbphrase[go]" />
            </form>
            </td>
        </tr>
        </table>
    </div>
<!-- / PAGENAV POPUP -->
</if>

<if condition="$show['member'] AND     $notifications_total">
<!-- notifications menu -->
<div class="vbmenu_popup" id="notifications_menu" style="display:none">
    <table cellpadding="4" cellspacing="1" border="0">
    <tr><td class="thead" colspan="2">$vbphrase[your_notifications]</td></tr>
    $notifications_menubits
    </table>
</div>
<!-- / notifications menu -->
</if>

$ad_location[ad_navbar_below]
$welcomeheaders

Try that out on your board.