I dont know if it is normal, but the file template/style.css begins with stranges characters :
body {
It's UTF-8 identifier (so called BOM).
For everyone else asking why this doesn't work. Well, it specifically designed for browsers based on WebKit engine (Safary, Chrome). Hence it works only on iPhone and Adnroid smartphones. Don't expect it to work in Mini Opera, Windows Mobile etc.
I personally find this template pretty exciting, but it has to be adapted to CSS3.
And for questions about choosing template. I would propose different solution. Every modern browser support choosing CSS stylesheet according to attribute "media" in <link /> tag.
For example the following code will work just fine, desktop browser will automatically choose "normal.css", but phone browser will use "mobile.css"
<link href="/template/normal.css" rel="stylesheet" type="text/css" media="screen" />
<link href="/template/mobile.css" rel="stylesheet" type="text/css" media="handheld" />
This will work even with old phones. Even my ancient Sony Ericsson works with it
Now it's question of layouting desktop version correctly by CSS. Which is not a big deal