Thats cos hes using the same theme, which they both bought....I'm not going to get into the legality of what you're doing because I am not trained in law, but you pretty much have a carbon copy of the other site.
Layout, structure, colour palette, rollover images, Hell.. even the background gradient!
In fact the only significant differences I can see are your objects have rounded edges..
But like I said, I'm not going to comment on the legality of it.