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hi, the larger logo you made will probly work, it's just the table was set to height="80" so there will always be that white section until u change the background colour or change the height.. ie in the case above i changed the height to make it height="110" which fitted with the rest of the header..
the headerlogo is not actually a file, it's a class in the style.css file
if u look in that file you will see all the table definitions etc, the colours, text decoration etc etc..
wherever it says td class="name" or class="odd" "even" etc etc basically wherever something is defined as a class, you should find those classes in the style.css file..
changing each section (class) will change the looks, colours and borders etc of your site..