The header nav (from “header.php”):
<div id="pg-nav">
<ul class="nav">
<li class="page_item <?php if (is_front_page()) echo( 'current_page_item' );?>"><a href="<?php bloginfo( 'url' ); ?>"><?php _e( 'Home', 'traction' ); ?></a></li>
<?php if ($traction->hidePages() !== 'true' ) : ?>
<?php wp_list_pages( 'title_li=' ); ?>
<?php endif; ?>
</ul>
</div><!--end page-navigation-->
1) This Theme is using wp_list_pages(), so it is a list of all of your static Pages
2) It appears that the Theme has an option to hide this menu, so look for the Theme Options page.
3) This Theme is a free version of a commercial Theme, for which the developer offers paid upgrades and support. You should consult the Developer for support:
http://thethemefoundry.com/traction/