re-post - forgot to mention you have to call the theme which is odd that author includes it but never calls it...
all ace themes are there you just have to manually choose something other than "twilight" which is located in wp-live-css-editor.php on line 51. for example,
live demo of different theme styles here - http://ace.ajax.org/build/kitchen-sink.html
Now that the chosen js theme file is loaded, we have to call it by adding the following line to wo-live-css-editor.js on line 558:
would be nice if a plugin options panel allowed changing theme without having to manually change plugin core files...if I don't get around to adding this myself, glad to help in any way I can if author is too busy =)