the gap is being caused buy the line height attribute being applied to the body tag in the screen.css file:
body {
background-color: #000000;
background-image: url("../newstonepits_newdesign_images/layout_01.jpg");
background-position: top center;
background-repeat: repeat-x;
color: #463F47;
font-family: Arial, Helvetica, sans-serif;
font-size: 11px;
line-height: 14px;
margin: 0 0 0 0; /* Sets the margin properties for an element using shorthand notation (top, right, bottom, left) */
padding: 0 0 0 0; /* Sets the padding properties for an element using shorthand notation (top, right, bottom, left) */
text-align: center; /* Centers the page content container in IE 5 browsers. */
/*overflow: auto;*/
}