Did this quick for you, sorry about the spelling and if I missed anything
1. Have you changed URLs (set up 301 permanant redirects on the old urls) - this is important
2. Have a add to cart button on the product teasers, all the cta's dont really stand out enough
3. Have a more obvious "View basket" / cart status control with what items are currently in and how much.
4. The site is way too slow when browsing between categories (I havent read all the comments but I see others think its fast... but while its not painfully slow, just at that point when clicking to another page isnt instant when it should be) I am on a decent internet connection as well. Just seems to lag a little.
5. Whats the blank section at the bottom of the checkout for? (not that important).
6. Drop the two backlinks at the bottom promoting your web designers / developers sites (or make them nofollow if you must have them) the anchor text is great for them but wont be helping google work out what your site is about... its about top end bags google is probably wondering why every page has two back links to web design / development services.
7. Why is the alt text / title text of every product "FRONT VIEW" - get this fixed?
8. Move the search box above the cat browser and watermark the box with "search our site", drop the search heading and move the find button up to the same line as the box (rename it "go" if you have to. this will give you a little more vertical space).
9. Get listed on Google base and use Google webmaster tools and the MSN / Yahoo equivilants.
10. Check all site pages in ie6 / 7 / 8 / ff / chrome. I just checked in chrome and it looked great.
11. Make sure you have all the ROI code written out in analytics (value of sale / individual items etc).
12. Get title text put on all links in the side nav (all links if you can).
Really nice design, love it.
Some more promotional tips (might not help your conversion issues so much):
http://www.easywebstore.net/Promoting-your-Online-Store