Does any one have an idea how to fix this?
That theme includes the psd files just, open it and edit the color. Then just slice it and move it to your images folder. The file you are looking for is panel-button-active.gif
A link to your website might help determine what part the css needs to be changed.
Try add this to your index.php page to the following
<?php query_posts('showposts=5'); ?>
I got this from here. http://www.webdesignerwall.com/tutorials/wordpress-theme-hacks/
also try reading
http://codex.ww.wp.xz.cn/Function_Reference/query_posts