Issue: Unreadable text and broken images

Sounds like a compression issue. I will have to investigate this more against your configuration. I will post more when I find something.

This occurs because of a bug in versions of MySQL between 5.0.2 and 5.0.88.
MySQL was returning values of data-type BIT as BIN values between 5.0.2 and 5.0.88 due to a change in 5.0.2 which allowed storing the binary values (0s and 1s) directly in BIT fields (a bit being 0 or 1). This ended up causing many regressions editing and displaying, and after arguing for many versions that it wasn't a bug, in 5.0.88 they changed the return value to UNSIGNED.

I'm guessing your MySQL version falls between those versions, so your server is returning BIN, which leads since PHP to acknowledge it as a string rather than a number.

This means instead of bitfield = 1, we have bitfield = [GARBAGE]
So VaultWiki is unable to determine if the current page-text has been compressed or not.
Since VaultWiki is supposed to have much laxer requirements for MySQL, I am working on a fix now, but it requires modifications to our database abstract, and everywhere these bit values are used. It may take a few hours before I can apply it everywhere on your install.

Marking this as fixed for Alpha 3. All wildcard and explicit BIT-type field selects (vw_revision.flags, vw_attachmentfile.file_flags, vw_attachmentthumb.flags, vw_moderator.options) have been updated so that they are appropriately type-cast to an integer, regardless of the MySQL version.

Ah I see. Thank you.
What about the broken images? Additionally, I went to see if I could change it in VaultWiki's Control Panel through Styles -> CSS
but I get

The fatal error should be fixed now, but I think the broken images are due to a missing stylevar 'vw_imgdir_icon'. You can create it yourself using vBulletin's stylevar manager, just make sure to add it to the VaultWiki product to avoid collisions on your next upgrade.