There are 2 possibilities why the windows are covered with wood.
1 They are broke and that stops the rain and thieves.
2 They are not broken yet and that will protect them from vandals.

The onyl way to know for sure is to go inside and look. But expect to find shattered glass. Either way, you got some free wood.

To find out if the area is relatively safe or not talk to the police. Ask the neighbors. Read the newspaper. The crime section will show where crimes happen. PLUS look online. search for it. maybe http://www.city-data.com will help. It shows about whole areas. Not sure about neighborhoods.

yes I was thinking of the covered windows. so, there is no glass there at all? Is it related to vandals or gangs. How do you determine where the best area to live without any background knowledge. I am originally from Australia and don't know the ins and outs of the market yet. so any help is greatly apprieciated.

The wood panneling that you are refering to are boards that are covering up the windows? If so the likelyhood of it being removed is slim to none. I would assume that you are purchasing the home "as-is".

Wood paneling? Do you mean windows that are actually boarded-up because they are missing or vandalized? If that is what you are referring to, no, you will likely be purchasing the home as-is.