Simple Blog is a free WordPress theme that includes features such as WP 3.0 menus, custom backgrounds, featured images, nivo slider and more.
Theme Features:
Auto-Resizing Images & Thumbnail Height/Width Options
Drag and drop menu system
Unlimited background options
Image logo option via theme panel
Threaded comments
Full posts on home and category pages – unless you use the “more tag”
NivoSlider – fully customizable via theme panel
Built-in pagination system
Next and previous post navigation
Author pages
Optional category, tag and author sections
Optional search bar
Drop-down menu
Widgetized sidebar
Advertisement sections
Theme homepage: http://www.wpexplorer.com/simple-blog-wordpress-theme.html