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(continued) ...In the username field enter root, in the password field enter alpine. The port number, if you need it should be 22. This should allow you to connect to your phone's file directory.
Once in, navigate to the top level of folders, then navigate to the folder Library/Themes. Drag and drop the Family Guy SMS Balloons.theme file into this folder.
Finally, go to Winterboard. Family Guy SMS Balloons should now appear in your list as a selectable theme. Select it and respring, and you should have now installed the theme :-)
Hope this helps.
Firstly, if you haven't already, you need Winterboard installed.
Secondly, download the file and extract the .zip (you should be left with a file called Family Guy SMS Balloons.theme).
Next, you need to use SSH to transfer this file to the phone. Forgive me if you already know how to use this but I'm unsure as to your level of iPhone knowledge so I'm trying to explain in as much detail as possible! In Cydia, install the packages OpenSSH and Automatic SSH. Make sure your iPhone is connected to the same WiFi network as your computer. You'll need to install an SSH client on your computer if you don't already have one. I have a Mac and use Cyberduck, for PCs I believe there's a program called WinSCP that works the same. Open this program. Create a new SFTP connection, and enter your iPhone's IP address (findable by going into Settings->WiFi->(your connection) on your iPhone (on a home network this should be 192.168.1.x or similar)...