huge issues with header using sprites and post content laying on top

I’m working on a new template for my site, starting with the PhotoBlogV1 theme and customizing to fit. (the layout is what I wanted but the css is a complete and total mess, I’m fixing it up as I go)

I created an image for the header and want it floating left, while a sprite based navigation list floats right.

After messing around and getting all kinds of results (menu items under image, half on right half under in random ways, etc.), I finally got the image on left and menu on right, but now the posts are on top of the header and the menu is no longer working correctly (it appears that clicking does link, but when I mouse over the color does not change- that had been working previously)

I had it all working with just the menu not where it was supposed to be, so I created a new div id to wrap the image and menu in with absolute positioning, that is when things went wrong.

Can someone please point me in the right direction for having the header come out right?!?

site is: http://www.trishiamarie.com/photoblog (temp directory for testing new theme in, please excuse the dummy posts)

the header php file has this:

[Code moderated as per the Forum Rules. Please use the pastebin]

thanks!