Right, I use Wordpress myself so I’ve had all of the same kinds of head-scratchers.

1. If you go to the admin section and click on Links you will see that each link has a category assigned to it. I’m guessing these all say Blogroll. you need to set up new link categories (music, books, etc and reassign them).

2. Your banners will have to be put into the new template. You’ll find the html under Presentation/Theme Editor. Copy the html for the banners and paste them where you want them (sidebar or wherever). A word to the wise here from painful experience. Before you do anything to edit that html save the original in notepad or something so if it all goes wrong and you delete it you’ll have a back up.

3. I don’t know why the archive is doing that. Might be a html thing that is unique to the template.

4. You’ve got to go into the html again and link those buttons at the top yourself to where you want them to go.

I know when I started out I had hardly any clue of html. I’ve picked up a few things from totally messing up my own blog while trying to figure it all out. If you need anymore help just let me know and I’ll try and lend a hand…or just stand beside you and scratch my head.