It is not looking bad at all. Everything looks good except the header's text (Buddy Flare, where friendships are born etc.) I think you can improve that a great deal. It is the only bad looking part of your site in my opinion. Now about advertisements. Are you planning on building this site up to be what it seems to be (an online dating site) or not? If the answer is yes, then you are making a very big mistake by placing that Meetic banner there. You are competing with them, you should not send them your visitors. Good luck. It's a crowded market.
The site is very nice but headder completly lets it down,did u take the rainbow thing from pixalgirl site?? sware ive seen it before. it needs a re-work but apart from that nice template.
Ummm its just a default script installed on a domain? no users no content no nothing what are we to review?