OK, try putting the global $db line just inside the if, like:
Code:
// ### LOGGED IN USERS #################################################
if (($vbulletin->options['displayloggedin'] == 1 OR $vbulletin->options['displayloggedin'] == 2 OR ($vbulletin->options['displayloggedin'] > 2 AND $vbulletin->userinfo['userid'])) AND !$show['search_engine'])
{
global $db;
$datecut = TIMENOW - $vbulletin->options['cookietimeout'];