1) to get the updated there (version 3.4.2) go to
http://wordpress.bytesforall.com/?p=74
When you update the theme you will not lose any of your changes. the theme options are stored in one of the wordpress databases (wp_options) - you can even have multiple versions of the Atahualpa theme in different folders in the wp-content/themes/ folder and swap back and forth. Just name them different for example: atahualpa333, atahualpa341, atahualpa342
2) Fonts in the header - the blog title and tagline, are controled at
ATO->Style & edit HEADER AREA->Blog Title
and
ATO->Style & edit HEADER AREA->Blog Tagline
while the menubar is at ATO->Page Menu Bar->Font Size & Face
and the category bar is at ATO->Category Menu Bar->Font for Category Menu Bar
3) rotating images are FTP'ed to the folder wp-content/themes/atahualpa/images - review
http://forum.bytesforall.com/showthread.php?t=321 if the images don't show
4) to add a widget to the header, follow the directions at ATO->Add new WIDGET AREAS