the problem is caused by the overflow: hidden property on the header-one class in the style-sheet.css file:
.header-one {
margin:auto;
width:924px;
overflow:hidden;
clear:both;
text-align: left;
background-image: url(../images/red_bg.jpg);
background-repeat: repeat;
height:110px;
}
change that to:
.header-one {
margin:auto;
width:924px;
/*overflow:hidden;*/
clear:both;
text-align: left;
background-image: url(../images/red_bg.jpg);
background-repeat: repeat;
height:110px;
}