My question is: do I need to use the Culoumns UI mode to adjust the behaviors for the display of my images in the art panel or can this be done in the default UI?

The way I read this, the OP is happy with his layout.
He wants to know how to get the artwork panel to auto-cycle/scroll through all images located at the active music folder .
There is a WSH Panel Mod artwork viewing script around which would satisfy all his wishes (at the 'WSH Panel Mod script-discussion-help' thread) .

I use the script myself. The last version of the script can be found at this post here

http://wiki.hydrogenaudio.org/index.php?ti...all_a_component

you then need to use layout editing mode to add a panel to your layout.

http://wiki.hydrogenaudio.org/index.php?ti...ut_Editing_Mode

Any tips on why this won't install are appreciated?

I was also wondering [...] if my Default UI mode is okay for this plugin?

I'd take a look if I could get the file from a host that doesn't require registration. There isn't a README file in the latest download? Surely there is just some sort of a text file containing the javascript, along with supporting folders and files that all get copied to your %appdata%/foobar2000 folder.

http://code.google.com/p/foo-wsh-panel-mod/downloads/list

FILE............: https://rapidshare.com/files/3049000247/WSH_Artwork_Viewer_1.2-r0LZ.7z
FILE SIZE.......: 485 KB
FILE CRC-32.....: 84cc4493

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%foobar_path%\lastfm\album\%artist%-%album%*||%foobar_path%\lastfm\artist\%artist%*||

All done, enjoy your auto-cycling artwork viewing panel.

// ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
function RGB(r,g,b) { return (0xff000000|(r<<16)|(g<<|(b)); }

// You can change the background color to suit yourself by entering your RGB color numbers here,
// choose. . .

//var backgrcolor = RGB(34,28,28)  //<<<<<<<<<<<<<<<<<<<<<<< color is very dark brown
var backgrcolor = RGB(0,0,0)  //<<<<<<<<<<<<<<<<<<<<<<< color is black
//var backgrcolor = RGB(212,208,200)  //<<<<<<<<<<<<<<<<<<<<<<< color is toolbar grey
//var backgrcolor = RGB(255,255,255)  //<<<<<<<<<<<<<<<<<<<<<<< color is white

function on_paint(gr) {
    gr.FillGradRect( 0, 0, window.Width, window.Height, 90, backgrcolor, backgrcolor);
    if (window.Width < 10 || window.Height < 13) return;
    gr.SetSmoothingMode(Properties.Image.SmoothingMode);
    gr.SetInterpolationMode(Properties.Image.InterpolationMode);
   
    Image && Image.OnPaint(gr);
}

OK/Apply ... Done!