Hi Esther...
I have had a go as well and have come up with something slightly different.
http://www.venicedigital.com/cc/esther/esther-home.html
To begin with I have brought your bottom menu up inside the container because I notice that its behaviour is very erratic...it changes height according to which page it is on and the content the page contains. Keeping it inside the main container I think you will find that it should remain constant.
Your header image is now a background image in the css code so the space for the image is left between the header divs, but it is not necessary to actually add the image name there...hence the apparently empty space in your html.
I have left space for your horizontal menu, but not having the flash file, I have had to make a few guesses about space according to the code I could see on your page for the horizontal menu.
I changed the name of your container from
all-content to
container...that was really to help me to find things but you could quite happily change that back to your original id name of course.
I did as Inger did, floating your two body images to left and right so that they aligned horizontally. I didn't bother to resize them but just compensated for the difference in size by adjusting the padding around each of them. Their position is relative to the outer container, and so I have not used any distance positioning except by the use of padding and margins. I have also used a layer position as they just disappeared behind the background without it!
As for the instructions...they are in their own div box telling them where to sit centrally positioned on the page relative to the outer container and not to the whole page. You have to be careful positioning things absolutely because this won't work with all screen resolutions of course.
So as we can see...putting this right has been open to several interpretations. I see that mine works ok in the usual 5 browsers (opera, ie, safari, firefox and chrome) and in my usual resolution of 1440 x 900 and also tested on all browsers at 1024 x 700.
Now just take your pick. You can pick up the css file by doing the address of the page above, replacing the esther-home.html with massagefrog.css