One of the greatest things about WordPress is that there are so many ways to customize it.
I use the theme Chameleon 1.0 by Ainslie Johnson. I modified the original version to show my own image header and tweaked the colors a bit. Beyond that, it is all plugins and minor changes to the templates to use the plugins.
These are the plugins I use on this site:
Spellbound Blog’s WordPress installation is proudly hosted on Bluehost.