The menu option is missing due to the way it loads, well TinyPortal loads.
Encoding issues, I don't know what's causing that as it's the same calls as SMF makes, unless there is a section of code where the encoding type is set not called.
What error's do you get for the guest access?
To put it where ever you like you need to include Settings.php and TPortal.php correctly. Whatever that path is.