Yes, those are used when you don't want a workflow driving the approvals. In that case you can either use a sequence of steps, or create approval rules to trigger your approvals.http://wiki.servicenow.com/index.php?title=Approval_Engines#gsc.tab=0
Check the Approval Engines for the table you are running your workflow (System Properties > Approval Engines).If approval engine is turned on for that table, the approval activities will be greyed out.
Are there any variables being hidden on the form ? For example, between "Is this a client issue?" and "Login Credentials".If not, I'd suggest you open a ticket in HI with Customer Support. There are a few known issues with variable size and alignment...
This article has examples on different layout configurations for variables:ServiceNow KB: Determining if you are using the correct container variable (KB0539982)