I have just a couple suggestions, and promise I'll be nice.
This phrase here I'd take out
A fee of $2.50 for handling
Two reasons, For one I wouldn't buy anything cause I think thats a bit steep for a handling charge (but I'm a cheapskate, lol) It is a huge turn off to buyers to know you charge a handling fee let alone how much. I'm not saying don't charge it, cause I do. But rather say something like "I charge a small handling fee for etc etc." The buyer doesn't need to know how much you charge.
Next these sentence
Damage due to handling after the package has been shipped is out of my control and no refund is in order. Insurance claims are the responsibility of the buyer. I will provide copies of receipts for insurance claims.
Normally I wouldn't say anything about this, but there is a discussion going on at the ebay store board about this very thing. Technically, we (sellers) are completly responsible for the package until it reaches the customer. Any buyer can claim item damaged and get there money back from paypal, regardless of what we do or say, or how we packaged it, I know sucks but its the way it works.
Here is the link to the subject on the store board. Sellers & Shipping
Thats it, Your store looks great, and you have beautiful templates.