I cannot stop being amazed at the versatility of this theme.

I'd like to totally remove the rotating images? How doI do that?

If you only have one image in the
/wp-content/themes/atahualpa/images/header
folder then only one image will show

Thank you for the response. I should have been more clear. I want to remove not just the images but the entire area containing them and move up the rest of the page.

How can I do that?

See A. Theme Options -> Header -> Configure Header Area