I am having the same problem with the Small Business Theme using version 3.5
1. I can not drag widgets to the side bar.
2. On the page editor it will not allow hyperlinks to be added. When you highlight a word and click the hyperlink icon, nothing happens.
3. Also on the page editor there are 2 tabs: Visual and text. When you click on the text tab, nothing happens. On the old version the 2 tabs were called visual and html
The small business theme with the old version of word press works fine, but with version 3.5 the small business theme is unusable with the problems.