A screenshot wouldn't really help me too much, I usually prefer to see code. I downloaded the theme and tried it. I put the search code after the closing "friends" ul tag, but it should work OK after any of the closing ul tags (or before any of the h2 tags) depending on where you want it
There seems to be a character encoding issue (the upper case E with the circumflex^ - &#202; ) but hopefully this looks like what you have and it will work. Test it by looking for a word in a comment to be sure.
<?php // H1 is hidden, but exists for semantic value and spacing. ?>
<?php // Comment this out if you will not be using Pages. ?>
<?php get_links(-1, "<li>", "</li>"); ?>
<h2><label for="s"><?php _e('Search:'); ?></label></h2>
<form id="searchform" method="get" action="<?php echo $PHP_SELF; ?>">
<input type="text" name="s" id="s" size="15" /><br />
<input type="submit" name="submit" value="<?php _e('Search'); ?>" />
<?php get_archives(); ?>
<?php list_cats(FALSE, ' ', 'name');Ê?>
Also, I don't know what version of WP the theme is compatable up to, I have 2.2 and I couldn't see a link to the admin pages.