Themes being placed in temp?

I thought I understood drupal, then some crazy stuff happens that I just don't get.
I have been using a theme called stylized_beauty on a site for a few weeks, and although I installed it in themes today I see the used copy is actually in themes/temp/stylized_beauty.

Can anybody tell me why that is?

ALSO, another question (about this particular theme) features that work under Garland don't work under stylized_beauty. i.e some jave scripts for collapse, also tinymce doesn't show its menu bar in content.
Any idea what tinymce works on Garland but not another theme like stylized_beauty.

Thanks
SP