I have empty space in my header that I cannot account for. (That is header, not head...)

Between the widget at the top which holds the header image and login, and the page menu... Check it out: http://www.theblogfarm.com/

Any idea how I can find and eliminate this space?

Use FireBug to examine the header area and look at each element in the widget area to see which is the culprit (hint: look at each widget and their elements)

Okay, I did that, it shows my widget area height. Is there any way to adjust or set the height on the custom widget?

did you look at the div's (like in the last widget)?

The only div's I have are in the last (right) widget, which are needed to align the table. See below...

Is there any way to achieve the same layout and eliminate the div?

<div align="right">
<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td width="100%"><a href="/login/">login</a> | <a href="/login/?action=logout&amp;_wpnonce=8c6d206766">logout</a>
| <a href="/login_logout/?action=register">register</a> | <a href="/wp-admin/profile.php">profile</a></td>
</tr>
<tr>
<td>
<p align="right"><a href="http://www.facebook.com/TBFAdmin" target="_blank"><img src="/images/facebook.png"></a>&nbsp;<a href="http://www.twitter.com/theblogfarm" target="_blank"><img src="/images/twitter.png"></a>&nbsp;<a href="http://feeds.feedburner.com/http/wwwtheblogfarmcom" target="_blank"><img src="/images/rss.png" /></a></td>
</tr>
</table>
</div>

What is the CSS used by them?? Try shutting each css rule and see what happens (in firebug, clicking to the left of the tule will shut it off)

You lost me on that... I looked but could not figure out what I am looking for, lol.

use firebug and examine the source.
find the div with an id 'text-80' now here the CSS shows up (on the right hand side of the screen) you will see the CSS that is applied. when you hover to the left of each rule you will see a circle with a line thru it. Click on it to shut off the rule. examine the results.

I did what you said and turned them on and off with no effect (it did affect other areas). I noticed that when I look at the center of the three widgets, click on the css, I get the dimensions.

Box Model
width 355.333px
height 74px
top auto
right auto

I apologize for not completely understanding your instructions. I do believe the height 74px is the problem, not sure how to fix it though.

this is what you should see

check the margin

Found it, it is the margin. When I turn it off it is perfect. Now the question... How do I adjust the margin? Which css do I edit?

Okay, I edited it under style widgets. Fixed the problem but jammed all my widgets (sidebar) together. How can I edit only that widget area?

Enter the following in your css

#text-80 {
    margin: 0;
}

Thanks so much... worked great. I think what I appreciate most is the fact that I learn something every time you guys help me. Now I have learned how to identify individual css and edit...

Problem is, at 61 yrs old I have a tendency to forget it faster than I learned it...

You guys are fantastic.