Just wanted to post an update since WP has not accepted the updated version of simpleX version 1.3. It now works with WordPress 2.7 and also supports threaded comments. Please visit http://www.wpshoppe.com/themes/ to download version 1.3. Those of you who have been asking for support to WP 2.7, here you are. :)
Thank you a lot everyone for the awesome response.
simpleX Theme Developer