This is because you have a second version of jquery loaded with your theme. This either causes a conflict between jquery versions, or creates a jquery library that is incompatible with the core Drupal js.
As far as I know, the latest version of jquery that works with Drupal 6 is 1.3.2, which you can install using the jQuery update module . I read reports on how people get v1.4 and even v1.5 for work, but at the cost of some basic features like AHAH
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