That should be OK. And that error in init.php is in an area that only gets executed when you disable hooks, so that's probably why that started appearing.
I'm kind of stumped. When you uploaded the files, did you select ASCII/binary mode? Maybe try uploading with different settings for that.
Edit: I searched for that error on vbulletin.com and found a few mentions of it, but no answers. However, someone did mention that with some hosts you need to use a .htaccess file to direct it to use php5, otherwise you're actually getting php4. Did you try going to the adminCP (assuming you can get there) and looking at "view php info" under Maintenance?
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