Blank pages from sidebar links - template issue?

I posted previously about widgets and blank pages, but I am wondering if perhaps the problem I am having is related to a template issue (versus a widget issue)?

I installed Atahualpa theme and have most of it working great. I added a Recent Posts, Categories, and Archive widget to the sidebars. These areas appear on blog and have content links listed beneath the headings. However, when a link is clicked, an empty page appears. This blank page does not display any error message. I am wondering if perhaps the links beneath these headings need to be linked to the blog template somehow? Also, if a blog heading is clicked from the Blog page, it produces a blank page. Anyone ever have this issue? I think I must be missing something really simple, but cannot figure out what it is.

http://site.escapadedirect.com/blog2 is the blog.

I am new to WordPress and have spent hours reading through posts here and on WordPress forum to find a solution, and couldn't find an answer. I don't have any widgets installed/running other than the default widgets - which I tried turning off and that didn't solve the issue. I am using WordPress 2.3.3 through Yahoo web hosting. Appreciate any advice.

Thank you!
JD