I should have checked before putting hours into a new site with this theme, it is not XHTML complaint. This is one of the first things I suggest you do for SEO and I'm not sure I personally would be touting SEO on this theme unless it passes the validator.
Also the meta generator tag is appearing twice for me on 2.9 and 1.3.2 which is not good for SEO either. It is happening on the theme home page also.
I have only 1 more suggestion from my experience, please add an option to customise the path for the rotating banner images so I can do an automatic upgrade.
Thanks.