New Theme problems

<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">

<head profile="http://gmpg.org/xfn/11">
<meta http-equiv="Content-Type" content="<?php bloginfo('html_type'); ?>; charset=<?php bloginfo('charset'); ?>" />

<title><?php bloginfo('name'); ?> <?php if ( is_single() ) { ?> &raquo; Blog Archive <?php } ?> <?php wp_title(); ?></title>

<meta name="generator" content="WordPress <?php bloginfo('version'); ?>" /> <!-- leave this for stats -->

<link rel="stylesheet" href="<?php bloginfo('stylesheet_url'); ?>" type="text/css" media="screen" />
<link rel="alternate" type="application/rss+xml" title="<?php bloginfo('name'); ?> RSS Feed" href="<?php bloginfo('rss2_url'); ?>" />
<link rel="pingback" href="<?php bloginfo('pingback_url'); ?>" />

<?php wp_head(); ?>
</head>

<body>
<div id="holdall">

<div id="holdhead">
        <div id="navbar">
	<ul class="mainnavigation">
	<li><a href="home.php">Home</a></li>
	<?php wp_list_cats('sort_column=ID&optioncount=0&hierarchical=0'); ?>
	<?php wp_list_pages('title_li=(' ')' ); ?>
	</ul>
    	</div><!-- //end navbar -->

    	<div id="headbanner">
	<img src="images/rf_header.gif" alt="Richard Ferri: Writer/Journalist/Nurse" />
	</div><!-- //end headbanner -->

</div><!-- //end div holdhead -->