OK, in file includes/index.php there's this:
Code:
<frameset cols="195,*" framespacing="0" border="0" frameborder="0" frameborder="no" border="0">
which I think sets the width of that left panel at 195 pixels. I don't know why it wouldn't be wide enough for you. Are you using the latest IE by any chance? Maybe try switching to "legacy mode" (or whatever it's called) for your site. I think there's a toolbar button for that.
Regarding user moderation, in case you don't know there is an "Administrator Permissions" page that lets you choose which permissions an admin has, but I'm not really familiar with it so I don't know if it's fine-grained enough to do what you want.