Yes it is ok on your demo site. Your search box is also okay on that page. On my pages, the search is pushed to the far left above the logo/header and its selection arrow is to the far right (I beleive someone else reported that).
This is for a clean install of your 141 theme. I've cleared my browser cache and the image cache within Zenphoto. Turned off menu manager, print album menu, zenpage plugins. If there is anything else I need to do to get rid of any leftovers, let me know.
If it matters, I am using version 1.404. Had to downgrade from 1.4.1 because of a bug with selecting search options which they may have fixed now.
Perhpas you could tell me what options you have set up for your demo site and I can match those settings to see if that fixes this on my end.