I checked your site, and used inspect element to change the header pic. I also got it to move up to clear the space between the menu, and the header pic. I used the following. You won't need the additional css that you have above. Just copy, and paste this into your custom css for the theme in the admin panel. Note that if there is any errors in the css above this it will stop reading at the error, and anything below it won't be read. If it doesn't work, try moving it to the top of the custom css. This will let you know that there may be an error in some of the other css. That is, if you have any other custom css.

.ow_header_pic {
    height: 100px;
    margin-top: -30px;
}

Darryl,
That's a piece of black magic!  I don't understand why mine didn't work, but yours does?  Thank you for your help.  I've written it into my Book of Wisdom!

Glad it worked. I don't know much, but hold my own with css after playing around with it a little. I figured out the trick of moving a know good piece of css around to find an error while editing a base css when I was customizing a theme. Funny how you think your on one line, and backspace a semi colon out on another line and don't realize it until your css goes crazy. lol

I used the css in the main file.  Before 1.8.3 I simply changed the px and it was fine, this time it didn't.  Is there a problem with the css on 1.8.3?  Like you mentioned - Is this wrong?
   "  background-position: center center; "

No. That's not incorrect css. Having width:100%, and background -size:cover; is pretty much the same, but they respond differently. 

Got that, thank you Darryl.