The revised Krystle theme displays correctly now. The difference between shorthand and longhand coding seems to be significant when a combination of 4 YUI CSS files is used. I highly recommend changing the original Krystle theme to longhand as well.
I am not a developer nor a coder at all. I also have no idea about YUI nor the new feature designer mode. In the Moodle forums I enjoy how people contribute and share their knowledge. This is how I learned a lot about Moodle.
What I mentioned above that switching the designer mode from on to off led to a wrong display, is only half of the story. The same action also successfully blocked my access (e.g., 180 concurrent connections or more instead of 20) to our shared server numerous times. The people at TMDHosting have been extremely patient and kind with me and allowed me to continue. I am not sure whether all shared host server companies are so gracious.
I like the Krystle theme and I hope to use it when we upgrade to Moodle 2.x.x this summer. Thanks for all your help.
With kind regards,