Declared widths (960px) are not your friend. Figure out the percentage that you need. That will also make your site different resolution friendly. iframes unless you control them are also not easy to re-space unless you can get your CSS to override them.
Edit: I had a friend that knows CSS look at it and he said: You've got a div with a 10px padding, followed by a paragraph with a 5px padding. That's probably the gap you've got at the top. If you want to keep the padding everywhere else the same then you'll want to change the padding on the div to 0px 10px 10px 10px. I'd keep the padding on the <p> the same to still leave some breathing room in there. As far as text under the images, you can't really do anything with that, as it's being pulled from another site, and they're the ones applying the styling. The reference site you gave has styling similar to the second option. Pink is right, having your URL would be much easier.