Chris,
What your seeing here is a change in the way block placement funtions in XTE compared to legacy themes. If you take a little time to look at the Xanthia admin panel you'll see a block control option; here you can remove blocks from certain modules, change thier placement etc.
In addtion in the Xanthia configuration you can enable visual block administration (vba). This option allows you to control block placement as you navigate your site.
Take a look through the
latest documentation [47]. This updated
documentation [48] will come with
RC3.
-Mark