Image captions have stopped working because wordpress 3.4 changes how [caption] codes are inserted. This means that 'img_caption_shortcode' filter has to be used instead of
add_shortcode( 'wp_caption', 'blaskan_caption' );
add_shortcode( 'caption', 'blaskan_caption' );
Andrew Nacin from WordPress has offered to help theme developers fix this - see http://wordpress.org/support/topic/caption-broken-in-new-34-posts?replies=19#post-2933359.
thanks for a great theme!