As far as modules like Login not showing up, I would check to see whether a previous template was using a module class suffix. In 1.7 you can find this in Module Manager > Advanced Options.
You might also check the menu items to see which modules are assigned to the menu item. You can view the modules in the Menu Manager > Menu Item > Module Assignment for This Module and see which are set to display (all or yes will, no will not). If there is a change to be made it will need to be done through the Module Manager for the individual module.
As for the menu not appearing as desired, the Blue and White Template does not have a menu at the top of the page. Usually, as with Balloon in the Sky, this module position is called user3. Balloon in the Sky is set up to have the menu items appear as tabs connected to the page, not as buttons. I am afraid that neither template you selected will allow the menu to be laid as as you are requesting.
Dustin
