Reducing blue space is easy.
If you're using the 0.9.3 version then just replace the

.Head {
background: url("../images/bg.gif") repeat-x top left #E5EAF6;
margin: 0px;
padding-top:99px;
padding-bottom:18px;
}

with

.Head {
background: url("../images/bg.gif") repeat-x 0px -20px #E5EAF6;
margin: 0px;
padding-top:79px;
padding-bottom:18px;
}


Just adjust the -20px for the actual image, and then minus that number from 99 to set as the top padding.

An image would be slightly harder, do you mean instead of the blue ?

Well, they're in different places for 0.9.2

In the soul-scape style directory, there's a file called global.css
You'll need to change the following bits.

from this

body {
background:#fff url(bg.gif) repeat-x top left;
margin-top: 16px;
margin-left: 20px;
margin-right: 20px;
padding: 0;
}

to this

body {
background:#fff url(bg.gif) repeat-x 0px -30px;
margin-top: 16px;
margin-left: 20px;
margin-right: 20px;
padding: 0;
}


and this

.SiteContainer {
margin-top: 99px;
padding-bottom: 20px;
}

to this

.SiteContainer {
margin-top: 69px;
padding-bottom: 20px;
}

To alter the precise amount of blue you'd end up with, you need to alter the -30px and the 69px numbers. However they need to be altered by the same amount. Whatever you take away from one, needs to be taken from the other.

To add your own image at the top, i'd reccomend opening the bg.gif image in something like Photoshop and stretching it so that it's big enough to accomodate your picture in the centre with plenty of the original blue image on either side.

Then change the global.css to

body {
background:#fff url(bg.gif) repeat-x center -30px;
margin-top: 16px;
margin-left: 20px;
margin-right: 20px;
padding: 0;
}


Ok cool that worked excpet now there is another problem :

http://i1.tinypic.com/n2lsfq.png

Look at the tabs ^ They are now too far up...how can I make them go back to the way they were? :s

EDit : lol nvm got it hehe.

check out my forum and lemme know if u like it :) : http://forum.fluxiontech.com/

Thanks for the theme bud, its nice :D