I don't think this bug is related to the problem discussed here. Z Weather uses a pure PHP XML parser, Domit. Joomla uses it too. The bug mentioned in the link is a C library, which I think is used in later versions of PHP as a built-in XML parser option.
If you are not seeing icons in your location manager, your hosting company may be blocking remote retrieval of data. You can verify if this is true by seeing if the Joomla feed module works on your site, which pulls XML data from remote sites in a similar way. You can also go to the "Help | System Info" menu in the administrator and look for the "allow_url_fopen" option. If this is disabled, then you won't be able to retrieve the NWS data on your server.
If your site is hosted on dreamhost.com, you are blocked from getting remote data. Here is a link to their wiki page about it:
wiki.dreamhost.com/index.php/Allow_url_fopen