Hi Bashy,
Since this is outside the vBulletin structure, it requires a MySQL connection string just like any PHP page that connects to a MySQL database. If you are creating "an internal page using Logicans web templates", then you probably won't need that connection string anymore.
Also, all lines that start with // or are between /* */ are comment lines. Where I say "// 3) password to give to moderators: $_POST['passw'] ==", just look at the line underneath it to find that code and the spot for the password.
No offense, but maybe it is best that someone who understands PHP a little better than both you and I does the work to integrate this into the vB structure.