The problem I'm having is once a user logs in to my site, the K2 edit item button floats in the middle-top of the screen. Also, if you go to the user page and try to add an item it also floats at the top of the page. Is there any way to fix this?

The website is articles.denveryearbook.com/

To see for yourself you can log in with : User: demo Password: demo (p.s. click next to the word "username" to find the text box)

I'm using joomla 3.2 and the newest version of K2

I've also tried this and had the same result with chrome, firefox, and IE

The framework is a stock T3 blank template by joomlart.

Any help would be greatly appreciated

Username and password do not match or you do not have an account yet.

This is a conflict with Joomla! 's modal and bootstrap.
You have to remove the modal class from your K2 overrides or even better edit your css so #K2Container .modal is not floating.