I'm having the same problem a few others had with the labels in the Template Manager that are not showing. I've tried all the suggestions like reinstalling the theme, but nothing has helped so far.
I've tried it with the template download and the demo download and I get the same result with both. I also didn't rename the template folder or change any files. Just downloaded the demo, unzipped and installed.
Joomla 1.6 English
Xampp for Windows
Maybe it's not important but I have Joomla running in a subfolder on localhost (http://localhost/yougrids/