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I've always said the only thing I don't like about work is having to deal with customers
. The logo image would be ok in a fixed width site, but with that logo they'll alienate low res users as they'll have to scroll horizonatally to see the whole screen, and you already know what happens for high res users
. You could suggest doing some anti aliasing & web optimisation on the title in the logo image to make it look a little smoother and get the size down a bit.
I depends what they want really. If they are just wanting it there to say "we have a website", then let them go nuts and do what they want. However, if they are wanting the site to actually attract business, then it really isn't up to their likes or dislikes. It's about end user experience, and as it is at the moment most users will not hang around long enough to see the site load as the rule of thumb is most users will wait 8 seconds before moving on. 8 seconds with a 56k modem in mind means total site size needs to be around 50k or so. Also might be an idea to show them what their site looks like in different resolutions. 800 x 600 is still about the 3rd most popular resolution on the web, and with that logo the site is definately not a 800x600 friendly site..