editor toolbar squashed or red ‘x’ something wrong

Hi
I am a new wordpress user – I have 2.0.4 installed via fantastico and at present am using the default theme that came with the installation. I have only added one plugin – the aksimet tht came in the package and all appeared well.

However when I go into write a post I can see the page loading with editing boxes and the editing buttons but when it is done the buttons end up all squished up and basically invisable and unusable- perhaps something wrong in the template? This is in FF. I also see some tick boxes come down on the right hand side but they alo magically disappear when the edit page finsihed loading. In IE I get buttons but they are red ‘x’s. As in firefox the rhs info is invisible when completely loaded.

So…can someone offer me a guiding hand as to what to fix and how to fix it? (i have tried a search but have not found an answer – perhaps need the right search terms to use)