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As you can see, the header image for my forum isn't going all the way to the top where the border starts. I don't want it all the way up, but I'd like to increase the size just a bit more so it doesn't look so short. How do I go about this? The image itself is already big, but for some reason the header area is cutting off the rest of it.

I'd appreciate any help.

the reason its cutting the rest of the image is because it is inside container. To fix the problem, try this:

ACP > Style & Template > Themes > global.css

This is your forums container. Find this:

#container {
    background: none repeat scroll 0 0 #FFFFFF;
    border: 1px solid #81A2C4;
    color: #000000;
    margin: auto;
    padding: 20px;
    text-align: left;
    width: 95%;
}

change the padding from 20px, to this:

padding: 0;

that solves the problem