I just got one, I'm not sure if the sytrofoam is supposed to come out or not.
Styrofoam and fire don't play well together. Not sure what you mean by "in it", post a picture
Inside the portion where the fuel is supposed to go
doesn't sound right but can't help you without photos or at least model info.
The styrofoam should come out. I believe it's just packing material. You don't need styrofoam to use that torch and I have yet to see a torch with it, in the design structure. Not to mention, the fuel will probably dissolve it.