First, take this out of the template:
<?xml version="1.0" encoding="iso-8859-1"?>. Apart from the wrong encoding, it throws Internet Explorer into "quirks mode".
Second, you've taken out a whole lot out of the
<head> section of your original template files (the ones that came with WP). There are good reasons why the stylesheet, for example, is by default included using
At the very least, you ought to leave
<meta http-equiv="Content-Type" content="text/html; charset=<?php bloginfo('charset'); ?>" />
<meta name="generator" content="WordPress <?php bloginfo('version'); ?>" /> <!-- leave this for stats -->
This ensures that your blog appears with the same encoding you set in the admin interface options (utf-8, presumably).
The validator, btw, isn't particularly happy with your site either.
Last, you really should leave a link to WP somewhere inconspicuous. When you're using free software, this is a gesture of politeness and recognition.