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 127.0.0.1] File does not exist: /home/username/adja.twocell.com/htdocs/wp-content/themes/bp-magazine/_inc/images/admin-menu-arrow.gif, referer: http://adja.twocell.com/wp-content/themes/bp-magazine/_inc/css/adminbar.css
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?