Hai there, great theme - really much thanks to everyone for this work!

My issue is that I am using WP 3.1.1 and Atahualpa 3.7.3 and I did also deactivate my plugins and still problems, when I drag my widgets to the right - under Appearance -> Widgets and leave that page, nothing happens on my site and all the widgets just move back to the left under the inactive widgets area.
This is a fresh install on a fresh domain.

Any suggestions?

No idea... Maybe try a fresh install of WordPress? What happens if you switch to the TwentyEleven Theme?

Disable ALL your plugins and see if you can move the widgets in. This tends to be a plugin conflict issue

Well ok...Everything is working now but I did have to reinstall everything.

I'm thinking there may have been a glitch between my last theme install and the atahualpa install because that is all that had been done to the original WP installation.

So completely fresh and definitely working now!
Finally I can stop banging my head, I guess I should have just done that in the first place! DOH!

Thanks *blushes*