Hi,
First of all, it has nothing to do with our template.
ideally the TOS checkbox shouldn't be in the registration form. But Joomla force to implement that checkbox to there, (it is not even a Virtuemart thing). You can disable that checkbox from the registration form only through editing the MySQL edit. There is no way to disable that checkbox through Backend.
If you have phpMyAdmin, look for a table called yourtableprefix_virtuemart_userfields. In this table you´ll find all userfields. Edit the userfield named "agreed" and set the field "account to 0".
More info:http://forum.virtuemart.net/index.php?topic=97745.0
regards.