For some reason I can activate the theme however when trying to login to the admin page I get:

Fatal error: Allowed memory size of 33554432 bytes exhausted (tried to allocate 1474560 bytes) in /home/urban1/public_html/wp-content/themes/atahualpa3/functions/bfa_theme_options.php on line 1476

Any ideas?

Looks like 32 MB PHP memory is not enough which is strange because I also have 32 MB on my server, and it works with a whole range of plugins installed. You could try deactivating a plugin or ask the host to increase the PHP memory limit

Thanks Flynn - disabled a few plugins as advised and that fixed it !