Kernel - The best thing I can suggest to remove the extra setting and template is to delete them with phpMyAdmin. Just look for the "Show Weather" option in your setting table, and then one of the index_weather in columns your template table. Then below I'm attaching the index_weather template for this version.
350Chevy - As far as I know there's no reason it shouldn't allow HTML if it's turned on. You could try to save the settings again to make sure they were saved to the template. If it still doesn't work after that you could open your myvbindex file and look for $newshtml. If you replace that with a 1, it should solve the problem, but you won't be able to easily switch that off and on via your Admin CP. Or, if neither of those work or you would prefer for me to take a look at it I can try to find the problem if you want to give me FTP access and set up a temporary admin account for me on your board.
GamerForums - Glad to hear it. I didn't think it would be too hard to figure out.