Ive got it now, just in case anyone else has this issue, I changed ocean front template header_bg.jpg image to 832 x 150 image and changed the image size in the style sheet, so by reducing the style sheet image size the gap closed (height was 150, changed to 130)



#logoWrapper{
margin: 0 0 0 5px;
/*background-image: url(../images/header_bg.jpg);
background-repeat: repeat-x;
background-color: #ffffff;*/
height:130px;
width:832px;
}