Hi,
Your joomla template is using SqueezeBox for "a.modal" class name and initials the popup on pageload. This is why the element is floating around without even get clicked.
The solution: Either disable "SqueezeBox" through your joomla template configuration.
(SqueezeBox might come with your Joomla Template or with K2 Component or with a 3rd party Plugin, i am not sure, check the parameters for both to disable SqueezeBox feature)
OR
follow this tutorial:
www.flexiblewebdesign.com/forum-virtuemart-2-template-puremart-support/687-terms-of-service-popup-not-popping-up#2876
(take the replacement lines from the above URL)
So you will start using "facebox" (instead of fancybox) to open the TOS popup page. Facebox popup plugin doesn't require "a.modal" class name, so SqueezeBox won't be triggered and there will be no floating problem.
Regards.
Support & Development