images aren't appearing for magazine theme

I've just installed WPMU, Buddypress 1.1.3 and the Magazine theme. Most of the images aren't showing up for the theme, although some down arrows and other minor graphical elements show up.

I tailed my Apache error log and found this:

[Mon Feb 08 09:41:23 2010] [error] [client] File does not exist: /home/username/, referer:

I checked the folder, and that file doesn't exist. I checked the zip I downloaded and it's not there either. I do have the admin bar turned off for non-members, maybe that's the reason for this error.

But the main issue is I'm not seeing the expected paint splash background and fancy images associated with this theme:

I've checked permissions on the themes folders (chmod 755), can you give me any other things to try?