Local.xml not loading after disabling theme

Question

I installed a theme and after completely disabling the theme module by removing the etc/modules/.xml file. Then resetting the design back to default package and default theme in admin, the local.xml in default/default/layout doesn't load anymore.

What could the theme module change that would cause this?

Answer 1

I found the trouble, it was a mismatched tag :)
I forgot to add a </reference> closing tag. Apparently this is enough to cause the local.xml to not load because when i added the tag everything worked. I checked my local here: xmlgrid.net/validator.html

Answer 2

Did your custom theme overwrite any of the files in the /app/design/frontend/default/default? Also, have you cleared your cache?

Also, that is NOT the way to disable a theme. Don't remove that file. Instead, open it and change true to false, then clear all caches: System > Cache Management.