having trouble

I was able to tighten things up by tweaking the style.css file. If you are not familiar with css however, make sure you back up the style.css file before you play with it. You would be looking for attributes responsible for bottom padding or margin for your nav bar or top padding or margin for your header image. By setting them to 0, you may be able to eliminate the spacing.

I hope someone else comes up with an easier solution for you.