it looks like you started off using the 'adsense.txt' style which is the current default to show what the theme is capable of doing. If you look at ATO->Style & edit HEADER AREA->Configure Header Area you will see
<!-- To remove the ad altogether, start removing here... -->
<!-- Put the ad code BELOW this (and remove the sample text if there is any) -->
<!-- Put the ad code ABOVE this -->
<!-- End removing the ad here -->
notice there are two '%image' in the section. unless you will be using the AD in the header area, remove everything but a single %image
Second - go to ato->Add HTML/CSS Inserts->CSS Inserts and remove anything that YOU didn't put there
Third - go to ATO->Header Image->Header Image: Alignment and choose where you want the image aligned in the header area.