Hi,
This is a known issue with Joomla Core TinyMCE Editor with latest upgrade 1.5.14. They are well aware of the problem from folks that have reported the issues with both TinyMCE and JCE editor not working correctly with latest Joomla upgrade. This is not template related but a Joomla problem.
You might try “Extended” mode paremter setting as they say that might bring back your editor tools.
I’m having major problems myself with not being able to put image “captions” and text wrapping around my images, left /right alignment and to much to mention here. If you go to Joonla.org forums you can read about it. Hopefully they will come out with a fix soon!
Sandy