I did another fresh install with this template today and when "Show width selectors?" is set to "no", the tab contents become invisible and the tools icon drops down low. Notice that when the tools icon drops down there is a corresponding lift in the headers. The header is partially covered by the tab itself.
(Also, when no content is published to the 1,2,3 user modules the tab remains)
I thought that maybe I had tweeked something wrong in the .css file so I uninstalled the template and tried again. But it does behaves the same way with both IE and with Firefox. Attached is the screenshot: