Widget in Dilectio won't allow edits

Theme: Dilectio 1 by Design Disease
I'm not sure about the Farms pack. But the Dilectio 1 theme came with WPMU. I have a client who is using this and the sidebar widget which shows up with a search bar and lorem ipsum writing on their blog is nowhere to be found on their dashboard to make changes.

It seems there should be a widget which shows up in the Sidebar 1....but as you can see from the screenshot, it's blank.

When I add widgets to the sidebar, they show up on the blog....but not on the dashboard. To get rid of them, you have to remember the widget you installed. Drag and drop it AGAIN, and then hit delete.

So something is going on with this design. Please help:

1: Need to edit the orange box on the upper left
2: Need to know why widgets are not showing up in the sidebar boxes.