tedster - 4:15 am on Jun 14, 2012 (gmt 0)
Hello silkysilky, and welcome to the forums.
You're going about this the hard way - and using position:relative is going to leave the space that you are seeing.
What you need to do is understand how natural document flow works. Using relative (or absolute) positioning in the way that you are is not going to be very fruitful. For most code elements, including the <img> element, you can just place in the source code where you want it to appear. Then by using float: and padding and margin attributes, you can do the fine tuning for a more precise psoitioning - and you won't need to use absolute or relative positioning so much.