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sorry silverpug, i meant mcdonald is using 2.2.3.. which is different to 2.0.7
with regards to your mainfile, it looks correct..
but i'm not sure what mcdonald is on about regarding line 59..
the menu is built from a template (system/templates/system_block_mainmenu.html) and is an include from theme.html when you enable the main menu block in admin..
viewing the source of the page from a browser is no good other than as a quick diagnosis.. if you want to change the layouts then you have to start looking at the actual templates. but the paths are taken from the xoops_url provided in mainfile.php
once you have that sorted.. delete the contents from templates_c folder.. they are just compiled templates (like a cache) and will be regenerated the next time that template is used.. if you don't clear that folder, then any changes you make will not be reflected because the old files in that folder will still contain the old paths.