Hi,
First of all, calculating prices based on selected attribute has absolutely nothing to do with our VM Template. This process is handled by vmprices.js file (by the way; it is a very important file in Virtuemart and our VM Template has no influence on it)
I browsed your website and looked for JAVA conflict, because I knew it was a JAVA conflict issue. And weirdly i didn't find anything. Your website looks like conflict-free. I really no idea why Virtuemart doesn't update the prices depends on attributes though.
But just in case, try this: Open your K2 component, and then click "parameters" icon, then somewhere in there (i don't remember now); find the "jQuery" loading and select "Don't load any jQuery" option and have your K2 component not to load any jQuery, because now it is loading jQuery1.6, and your Virtuemart already loads it. This duplication might create some confusion though,
Secondly, make sure you are using the most recent version (2.0.14) of both Virtuemart Component and Virtuemart AIO component. Both of them should be up to date.
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