First of all, did you purchase your Headlines theme from Woothemes or did you get it elsewhere? Because if you purchased your theme a Woothemes, you have the right to ask for theme support in their forums - I would be surprised and aghast if they treat customers that way.
Secondly, your theme is double-nested. i.e.
yoursite.com/wp-content/themes/Headlines/Headlines/plus-theme-files-and folders
when it should be
yoursite.com/wp-content/themes/Headlines/plus-theme-files-and-folders
- So please correct that by deleting current theme folder and correctly upload the folder per 2nd URL shown above.
Third, to answer your question - per consult
find all occurrences of <div class="fr"> and replace with <div class="fl"> in the following files in your Headline theme folder:
a) archive.php; b) index.php; c) search.php; and d) single.php
- this will make the flow of tags aligned left, and take away the overlap. You could add more styling for .fl class if you want.
OR
open up your theme's style.css and find selector .fr and change declaration to float and clear left
.fr { float: left; clear: left; }
Caveat to this is not quite clear if .fr is used in other parts of the site but cursory check shows it is only used for the tags.