What happens when someone clicks on the icon (red circle with line through it) to report objectionable content (not on the Wiccle site but on the wiccle builds by default, ie my site)?  I used the function but don't know what happened?

It sends site mail to everyone with usergroup Global Moderator or higher with details of the reported content. It's the same here at Wiccle.com as elsewhere.

It doesn't seem to do that on our site.  I just ran a test, created a test forum post, then when posted I clicked on the red circle with cross through it, filled out the report and submitted it.  I did not get an email message?

I just tested the feature on your site, — and I notice the notification sitemail landed directly in the "Arcived" folder! It did show an increase in unread mail count though.

To fix, open up /core/ajax/report.php, and under line #210 ($mail['mail_type'] = "report"), add the following:

$mail['mail_tags'] = "inbox";

This will make the reports go where they belong. Bug confirmed, fixed for the upcoming build.

When you test this, also note that new mail status is updated on 60 second intervals (as defined in $core['sys']['member_refresh_intv']), and as such the mail number in the header will take a moment to change.