Your L&S Item layout is disabled depending on template you select for List layout. If you select Blog template, Item layout will be enabled. If you select Table template, List layout will be used instead. In any case this is used just for the list of results. If you open any result, it's Content layout will be used to display it. There is also an option to use "Disable List Template", in which case Intro layout of the content will be used for list items.
To display horizontal layout, in mode #1 click on a combo in Variation tab (mode #1), select joomla or seb_css3, and then click on the + sign. In the popup change Orientation to Horizontal.