Hello Marty,
It finally worked!
Thank you for your last post/suggestion, it lead me to a sequence which made it work.
For the benefit of other people who will be reading this, I will post how I did it. (Moodle 2.0.3)
Like before, I created a role and named it visitor. 'site admin>users>permissions>define roles' and 'allowed' only several options in the forum.
Note: in the define role, you can practically 'allow/prevent/prohibit/' anything, the list is very long, almost got cross-eyed and my forefinger ached from clicking all the prohibit option. My suggestion to the developers if they can put an option to toggle a group/category or sub group/category that way users won't need to toggle individually.
In the 'context type' area, I ticked all instead of just 'system', just to make sure it would come out, (if someone could post here which is the right choice everyone reading this would probably appreciate it.) I tried ticking only 'activity module' since I am going to use a forum but the visitor 'role' didn't appear.
Also created a user called 'visitor'.
I went to 'settings>front page settings>users>permissions>assign roles' and as expected saw the visitor 'role' that was missing previously. (please refer file attachments I posted previously)
I then assigned the 'user' visitor to the 'role' visitor.
I 'turned editing on' and clicked on 'assign role', the visitor 'role' option is displayed, clicking on it, I then assigned the 'user' visitor to the navigation block and also the setting block.
Lastly since these blocks are already 'deactivated' and cannot be seen on the front page, I clicked on 'settings>front page settings>edit settings' and ticked the 'include topic section' this is where I created the 'forum' I needed. The 'Visitor' can also access the courses through moodle's 'guest' access and prompt them for a 'guest' password. Since I also included 'list of courses' in the 'front page items when logged in'
Again thank you Marty, couldn't have done it without your help.
Regards,
Sterling Uy