Catch Kathmandu Free – html in tags/category description

Hello! I have recently used your theme on my website - it is gorgeous, but I have some problems with it. The html code does not work properly in tags and categories description in the theme. I installed a plugin (Allow HTML...), and the html code works perfectly in Wordpress itself, but not on the site. I edited your archive.php file to move the </header> a bit higher, so it won't include the description. It worked better - the div's and bolds work. Nevertheless, the images do not display, and the headlines have no effect whatsoever. Could you please advise? Cheers!