Please some logo help

I am tearing my hair out trying to figure this out.

I am currently using zj black 2 template and no matter what I seem to do I can't get the logo to look right at all. There seems to be distortion that I cant get rid of when using this template. When I tried zj orange, there was no distortion but the image just looked way to small on the page. I would like to stick with zj black2 but I am having a really really hard time with what should be basic stuff.

https://www.decaldreams.com I will upload the logo.gif and the original illustrator file if someone could please tak a look..

Well I don't know how to upload my illustrator file so if anyone has any suggestions on how i would appreciate it.

Here is what it is supposed to look like.

Also the page in itself looks like it has some other alignment issues.

I think it's the combination of the logo and the background image. When I look at the site in FF and remove the header background, the logo looks OK. Could be some sort of resolution mismatch?

I managed to upload my illustrator file to rapidshare in hopes that someone would be able to help me out. Here is the link.

http://rapidshare.com/files/243225738/NEWLOGOreflect.ai.html

Its to do with the gradient affect you are using, if you make the background of your header where you are placing your logo white or make the logo back ground the same colour as your header you shouldn't have any trouble.