The problem with the main part of the page dropping down like that is most likely due to extra html tags in your blocks.html file or possibly in your header.html file.
As for the block headers and the text breaking. That depends on the width of your td row at the top of your blocks.

Try posting your blocks.html file code and let's see...

Also, if you use Dreamweaver or somethign similar to edit the html files from that theme, you may be asking for trouble...Manually editing those html files is recommended. They all join together and have html tags that carry on to the next html file to be displayed. DW doesn't know this and may close an html tag without you wanting it to simply by default.

mikem