Thanks for the great theme and the helpful forums. I haven't seen a problem similar to mine, however. The default widget shows up BENEATH the ones I've added.
This came about after I imported the settings from another installation of wordpress. Also, I have a couple of widget plugins that may be involved but I've disabled them, reenabled them, and the problem remains.... The plugins are: "Display Widgets" and "Linkable Title Html and Php Widget"
take a look at the right sidebar here: