Thanks to everyone that made suggestions regarding my new layout. Most of the suggestions I really liked so I implemented them in one form or another. I have changed the header picture now, and I think it is acceptable. It is not quite wide enough, so if you have a huge display or really high res you will find that it repeats itself. I will clean this up another time.
I have also changed the code so that it should make viewing the site in lower resolutions than 1280×1024 less problematic. It should resize now, however if you are using 800×600 there are no guarantees. One other word of warning for those IE users out there. I have not tested the site with IE (yes I will do it one day) so if you experience problems please make a comment. Of course I recommend that everyone out there downloads firefox as soon as possible!
The power of blogger templates is just brilliant, there is so much you can do if you have the time. For now I do, so I will keep experimenting.