I think that the Yellow Card Mod would be a good addition to the forum, and make reporting people easy for users and moderating easier for mods.
It basically adds 4 buttons above every post,
Blue Button = report post to a mod. One click is all u need to report a post. This would make people more inclined to report as it would be easier.
Yellow Button = warning. 10 warnings = ban.
Red Button = IP ban.
Green Button = Unban IP.
You can set who can use each type of button (mods, admins etc) and you can have individual settings for each of the forums.
Once someone reports a post, a auto post is made in a forum (usually a hidden one) that includes a link to the reported post, plus some other stuff like time of report and who reported so mods can check out the report.
http://mods.db9.dk/viewtopic.php?t=8 - URL to yellow card mod.