When it say "on" for published just click it again - does it change anything at the front of your site?
Next, you should disable expanding menus because you are using them improperly. They disable the section title from having a link - they have always worked that way. If you want them to be clickable you should download the Indexpand menu plugin (which replaces the old version) and then you have more options (via the plugin section).
As far as I can tell, things are working fine, but you are tripping up on some common things (some of which are beyond Indexhibit).
I think you also have not setup your clean url's properly which is why your links (above) do not work - see the 'Help' section for the tutorial about setting them up.