Well. I forgot to re - CHMOD the params.ini in the template manager on two sites as I was mucking around with it and hey presto two sites got hacked by the turks. Lets see if they can get in now.
It was the template that was hacked - nothing else
Rarely are templates the cause of a successful hack.
(Unless you CHMOD files or folders to a permission higher than they should have.)
Generally speaking, if you have the latest version of Joomla, the latest version of the template, all of your 3rd party components are up to date, and your permissions are set properly, you should be in pretty good shape.
The link provided here should give you some insight on how to 'harden' your sit against hackers.
And if you are getting hacked you should let your host know as well, as they may have some security flaws they've overlooked.