Actually the arrangement makes sense to me.
You have the Red Rage and A journey in the Old Forest...
...underneath Poems and Short Stories
...which is underneath Unrelated.
Sort of like when you learned how to do an outline back in school. When you made a subpoint, you would move it over to the right slightly to show that it was underneath the point above it.
I agree though. It looks like crap. That and how it renames the categories of the links (ie The Associates?) made me skip this theme.
Probably look better when you get more pages.
I also have the issue with the center green bar being slid down when i view your site. I would send them a feedback on it so that they can create a ticket to have someone look at the theme. I've found a few issues with a few of the themes when I've viewed other sites.
<rant>I'll be honest. I have yet to see a single WordPress theme that I like. I have issues with all of theme. On my standard install for my clients, we include about 40 of them and I've gone ahead and modified each and every one of them. Don't get me started on the ones that we flat out screwed up....</rant>