ok Ive taken onboard all of what has been stated so far. The installer I used was ez2install as it provides (imo) better functions for switching themes, contect menu default settings ect...
The hotkeys work with other themes with no problems and have tried to get a response from the theme author with no luck. I am running the following theme :

FreeForm_Pantomime_v1.1
http://www.litestep.net/index.php?section=2&action=details&id=776

I cant find any other themes that I like that do not use the wharf bar and provide a true minimalist desktop.
The shortcut key module used is hotkey. As I said, it seems to only be an issue with this theme. I have tried ammending settings in the theme.rc and custom config files that come with the theme but with no luck. This is why I resorted to adding a gesture to hide all modules - the problem is, after hiding, all modules die and I cant get them back using a mouse gesture.

It would be really neat if I could use a mouse gesture to togglemodules. I went through but could not find all hide bangs for the modules so Im still left with the command box and the taskbar modules being displayed. I'll carry on playing with it and see how I get on :) , any further ideas would be greatly appreciated - also if anyone else has a similar problem with this theme, please post aswell :)

Thanks again for the reply's guys :)