After you upgrade, I think you'll find that it's much easier to just specify a width for #mainwrapper (I usually use 980px) and create your header image to fit that width, and be done with it. The site will look a little skinny on (web developers') high-resolution screens, but most of your customers will be using the standard resolutions.
I think 100% width should be reserved for sites with a lot of content on every page (Amazon). Many pages look kind of empty otherwise.
As you've noted, the header image won't resize with changes in resolution, leaving a lot of blank space or a mangled image.


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