Why is the theme refering to Google for code?
You may notice under very close inspection of your project that the jQuery library used is being fetched from Google. Google host a number of API's including jQuery in their AJAX library. You can link directly to these API's without having to host API's such as jQuery yourself. Millions of websites currently do this and there are four main benefits for using jQuery hosted by Google:
1) Decreased Latency
Google has servers all over the world. When a request is made to load jQuery, that request will likely be made to the closest server. This may mean jQuery is loaded slightly faster than it would from your web server.
2) Increased Parallelism
Some web browsers limit the number of files that can be downloaded from a single URL at a single time. If for example you've got 25 HTTP requests in the same page to the same server, a web browser may only load a couple of these at a time which can seriously reduce loading times. This is a common practice in older versions of Internet Explorer and was done to prevent the browser crashing by loading too much at the same time. By having a web browser fetch jQuery from a second location, this will speed up loading times in older web browsers.
3) Improved Caching
A web browser will remember the location of a large file such as jQuery in its cache. If another site a user has previously visited is loading the same API from the same URL, the web browser will use its cache. Potentially this means users don't actually download the jQuery API when they visit your site which will result in pages loading faster.
4) Reduced Bandwidth
jQuery is a single file containing a large amount of code. This file is normally about 58KB in size (compressed). Although this may not sound very big, after several hundred visits, your bandwidth will start growing rapidly. If you are running a popular website, this could become quite dangerous. Instead Google offer to host jQuery (and many other AJAX libraries) for free.
If you do not want links to external sources such as Google, you can open the theme contents and open the index.html file in a code editor. Find and replace this line:
<script type="text/javascript" src="http://ajax.googleapis.com/ajax/libs/jquery/1.3.2/jquery.min.js"></script>
with this code:
<script type="text/javascript" src="%pathto(js/jquery-1.3.2.min.js)%"></script>
There maybe two instances of this code that needs replacing in the index.html file. The theme includes jQuery in the scripts folder, so this second code will link to your local version instead of a version hosted by Google. Save and close changes to your index.html file when done.