That is a fixed width theme, and can't be converted to full width without some modification.
To fix the other problem you mentioned, open header.html and on line 38 change:
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Code:
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<table cellpadding="0" cellspacing="0" width="100%" border="0" align="center" valign="bottom"> |
To:
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Code:
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<table cellpadding="2" cellspacing="0" width="800" border="0" align="center" valign="bottom"> |