Some of the sites that host LS modules have gone AWOL. If you've only got those older sites in your list of possible hosts, then you'll not be able to download anything. In particular, you should have these two, both of which are still in operation AFAIK:

*NetLoadModuleSite "http://www.loose-screws.com/download.php?netloadmodule=" ".zip"
*NetLoadModuleSite "http://www.ls-universe.info/download/modules/"

Those lines go in your step.rc in your LiteStep directory, and are used by all themes. Add them and then recycle and see if things improve.

You may also experience problems if you're using a proxy server; in that case (or if the *netloadmodule site changes don't help) you should make a note of the modules that a theme needs and download the zip files manually from ls-universe.info. Stick the zip files in your modules/archive folder and try recycling once again.

HTH