MegaDrupal MD.Foto: Module dependency displaying incompatibility status I've downloaded the MegaDrupal MD.Foto theme. The feature module for MD.Foto has a few dependencies. One of the dependancies is on Chaos Tools, which I loaded. After doing so, I noticed that the Panels module began displaying the incompatibility message:

Requires: Panels (disabled), Chaos tools (>=1.4) (incompatible with version 7.x-1.2)

What do I need to do to correct this?
If you think Ctools 7.x-1.4 is the one you installed in your system and that Drupal wrongly detect it starts by clearing the cache. Then searh ctools.info file in your web root, if you find more than one, then you have duplicate installation of the Ctools module. Likely one of then is too old but is the one picked by Drupal. Remove it. If not, check the version in this file.