I opened upgrade.php in my text editor and found where 'dropdown' was mentioned, the upgrade 3.0-3.1. As you suggested in your email, I did apparently miss an upgrade. I started the upgrade at 3.1 because that is the version I thought we had. I ran the 3.0-3.1 upgrade and now see the product options and am able to move/delete ads.
I also located the color theme changer under Layout Options. As far as I can tell, things are as they should be now.
Thank you very much!