Hi – the first thing I notice is that your site is using jQuery 1.7.1 which is a fairly old version of that library and will probably cause problems.
Judging by the thread title it sounds like you’ve isolated the problems to your theme – so my guess would be that your theme is enforcing the use of this much older version of jQuery … I’m not absolutely certain, though, as it isn’t being loaded from within your theme directory – instead it looks as if you have a “scripts” directory in the root of your installation and the particular copy of jQuery being used is pulled from there.
Can you talk with the theme author and see if this can be changed so that the standard, more recent version of jQuery that ships with WordPress is used?
That would be a great starting point and may well solve this issue.