3) The deal with OTS2 is that it's a new theming standard that takes it off the users shoulders to figure out how to install the theme. Go and read the standards' docs to find out what it's all about.

If the Windowsblinds website does not keep proper track of LS progress, themes there might be OTS1, or, even worse, pre-OTS. Even though those work with some fiddling and tidying up the config files, usually it isn't worth it. There's plenty of up-to-date themes around.