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I think you need to set up an ad pack to make it work. First, create a new ad pack and make the price per listing to 0.00 and activate the ad pack (classipress->ad packs). Next, go to "pricing" and...

You could also create a custom menu and add blog categories to the navigation (appearance => menu)

you can override your style.css by putting your own commands in custom.css which is within the styles folder.
There is a file custom-sample.css you just need to rename it to custom.css.

try
.header_main_bg { padding: 0; }
in your custom.css.
This should remove the space.