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Hello, the theme should be install in System > Configuration > Desing, as you can see on our tutorial: http://www.hellothemes.com/uncategorized/how-to-install-theme/
Remove the design you added in System Design, remove the homepage, install the theme in System > Configuration > Desing and then add the homepage again as our instructions: http://www.hellothemes.com/support/documentation/helloglam-documentation/