On a default installation of Vanilla, when a user visits the site they don't see any TOS, nor is there a TOS at the bottom of any page, or anywhere available that I've found thus far. I may be looking in the wrong place, but I know I haven't seen any of it anywhere.
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signin.php
<ul> <li>By signing up you agree to the \ <a href="myurl.com/forums/termsofservice"\ title="Terms of Service">Terms of Service</a> \ and our <a href="http://myurl.com/forums/privacypolicy">\ Privacy Policy</a></li> </ul>
Right before this:
<?php echo $this->Form->Close(); ?>
signing2.php
echo '<p>By signing up you agree to the \ <a href="http://animateshmanimate.com/forums/termsofservice" \ title="Terms of Service">Terms of Service</a> and our \ <a href="http://myurl.com/forums/privacypolicy">Privacy Policy\ </a>.</p>';
Right before the last:
echo '</div>';
I also added the TOS and Privacy Policy to the theme at the bottom of the theme I chose.
Hope that helps someone else.