Does K2 really work for Appsite?

in the demo does not show K2 examples,
and when i did a brand new install of Joomla 1.7, and latest and greatest of K2,
and install appsite, i setup some dummy category and items in K2,
the format/css does not look like its applied

see attached, it does not look like the regular joomla content examples in the demo, though not sure what K2 demo content looks like since there are no examples of k2 in the dempo