The treatment of required fields in this form seems to imply that agreeing to the Terms of Service is optional:
From: Ning
Many users will know that it's required, but the treatment (relatively light visual weight compared to other form elements) increases the chances of it being overlooked. The problem may have been that the chosen treatment for required fields worked well for text fields, but not other types of data entry controls.
The other problem with this form its reliance on the color red to flag required fields, which won't be easily perceived by users who are red-green color blind.
