Looks like you are missing your .htaccess for rewritten URLs. You would want to go to ACP -> System -> Search Engine Optimization -> download the file in the description for the field "Rewrite URLs?"
Take note of the following, epecially if you accept PayPal.
If you disable any of these options beware that without a billing address:
Some payment methods will not be able to be used, including PayPal for card payments, 2CheckOut and some Authorize.Net processors. Any payment methods which are set to only be available to certain countries will not be available.
If any tax rates use a rate that is dependent on the customer's location, the default tax rate will be used.
Any Anti-Fraud Rules which act on the customer's billing address will assume the customer is not in the country specified by them.
If MaxMind integration is enabled, it's ability to accurately detect fraud will be impeded.
It is recommended if you use any of these features that you leave all options checked so customers are always asked for a billing address.