If you're referring to the site listed in your profile you probably missed a DIV somewhere when you replaced the encrypted code. I suggest you take a look at a few themes to get an idea of what you're doing.
As a side note, I'd be cautious of themes using encryption. It may be a harmless way of preventing users from replacing footer links but who really knows? I took a look at some of the themes on the site you downloaded your theme from and didn't like what I saw in searchform.php. Some of the themes I looked at had this,
<?php echo $_SERVER ['PHP_SELF']; ?>
NEVER EVER use that. Instead use,
<?php bloginfo ('home'); ?>
Exercise caution when downloading themes. There are some sites out there intentionally distributing shady code. My advice is stick to the official WP theme repository or the sites of trusted authors.