This has been fixed in the most recent version.
This is one of many ideas on the table for future versions. If you are interested in contributing let us know 🙂
This is a plugin that allows you to display data and embed a Vanilla forum into your WordPress blog. You need to have an “active” Vanilla Forum for this to work.
To answer your exact question:
“Tell WordPress where your Vanilla Forum is located Paste the url to your Vanilla forum here (eg. http://yourdomain.com/forum)”
What is this asking for, it’s like the forum is asking for the location of the forum? It doesn’t make sense?
WordPress needs to know where your “active” Vanilla Forum is so that it can 1. embed it into your blog and 2. pull data for the widgets.
You can read the full tutorial here http://vanillaforums.com/blog/help/how-to-integrate-vanilla-wordpress-plugins-and-widgets/
I hope that helps.