In the instructions is says "Now copy the Step.RC file and Modules.ini files from your new themes Temporary Folder into your Main Litestep Folder." Maybe I am a complete idiot, but for the life of me, I can't find a modules.ini in any theme that I have downloaded off this site. is it somewhere that I dont know about. I know that you dont all want some newbie asking lots of questions when you could be chatting about other things, but I would greatly appreciate anyone's help in this.

Not all themes use the modules.ini file for settings so it may not be included. The only themes that really depend on the modules.ini are those with wharf's.

It sounds like those themes are really old or at least not OTS compliant. If you're not sure what that means stay away from them.