Just to clarify...
The reason your images show in your sidebar the way they do is because you've inserted them into your html page under #sidebar and what restrains you've imposed on your #sidebar is what's containing and directing your images.
You'll need to style the images on an individual basis if you want to place them above the green sidebar panel. You can style these images in various ways. If you want to do it quickly, you can <span style="/"></span> your images on the html page itself ie:
<span style="your css here - margin-top:0;"><IMG src="image.jpg"></span>
<IMG src="image.jpg" style="your css here - margin-top:o";>
You'll need to play with margins and float elements, however to get them to align correctly. It's quick and dirty, and once you've mastered the positions, you can copy and paste the code into your css, re-define the span or style tags under a different div element if you want or you can leave tags insitu. Choice is yours.