I had the same problem. I copied the CSS information from the lazy-style.css file and placed it in my theme CSS file. (only do this if you do not plan on switching themes.
I then changed the lazy-index.php file to read as follows:
<?php
/* Don’t remove this line. */
require(‘./wp-blog-header.php’);
?>
<?php get_header(); ?>
<body>
<div id=”rap”> <!–div rap starts–>
<div id=”masthead”> <!–div masthead starts–>
<h1 id=”header”>“><?php bloginfo(‘name’); ?></h1>
<div class=”slogan”><?php bloginfo(‘description’); ?></div>
</div> <!–div masthead ends–>
<div id=”hmenu”> <!–div hmenu starts–>
<div id=”hnav”> <!–div hnav starts–>
<?php include (TEMPLATEPATH . ‘/horizontal.php’); ?>
</div> <!–div hnav ends–>
</div> <!–div hmenu ends–>
<?php if ($gallery_sidebar == ‘left’) get_sidebar(); ?>
<div id=”content” class=”narrowcolumn”>
<div id=”gallery”> <br/>
<br/>
<?php showGallery();?>
</div>
</div>
<!–div content ends–>
<?php get_sidebar(); ?>
</div> <!–div main ends–>
<?php get_footer(); ?>
