I've searched the forums, tried putting this in the inserts,

td#header {
padding-bottom:0px;
}

but still no luck getting rid of this.

I do have this

position: relative;
top: -55px;

to move my menu over the header image, however I've also change the menu height to 0, and it still didn't get rid of the space here.
Other suggestions I can try would be much appreciated! Thank you!
URL - www.kerncattlewomen.org

I think the way you originally had the image as a background would work better in this instance. Then you wouldn't be dealing with the distance between the header and the menu.

But that's not working for me. The background image won't center, so if I go to a machine with a different resolution the main part of the image is off center, and the menu won't line up. Of course, now when I look at it, it's centered but the right menu padding is causing issues on those machines.
Maybe I just need to go back to creating a repeating background image that will display behind a regular size header, so it appears as if it's one solid image all the way across. Of course, that still won't help my gap between the header and the main content.
It seems that if folks are doing a negative padding and z-index to put the menu over the header image, then others would be having the same problem with this spacing, but I can't find a way to get rid of it.
Grrrr, part of the reason I do custom designed sites primarily instead of blog platforms! I have complete control over stuff like this!

If you look at the post I made in that thread it will explain how to keep the image in the center.

For a full width 1600px background? Is this the thread you're talking about? http://forum.bytesforall.com/showthread.php?t=6525
I went there and saw two links to two supposedly different videos, but the link is the same. Not sure if there's supposed to be sound or not, but i didn't have any (have sound for other videos, however), and I didn't see anything even relating to full width headers. It was just changing background colors, and layout widths.
If there's a different post that would help me, would you mind posting it please?
So, I take it then that there's no way I can get rid of the gap between the header and the main content?

Yes that is the thread. Post #26.

Yay, that worked, thank you! Still working on a couple of other bugs, but I'll go search the forums first. A little donation is on the way, thanks for your patience, this is the first time trying to customize a blog to this level.