I am trying to create a custom stationary sheet, with a banner about 500 px
high, and the width of the note.

To simplify things, I used and existing stationary sheet and edited it with
FrontPage. I set all margins to 0 px, and added the banner image to the top
of the page. In FrontPage it looks exactly how I want it. However, after
saving it and then trying it in OE, the banner image drops down about the
equivalent height of the font size I am using.. in other words, I could type
my first line of the note immediately above the banner.

This is not what I want.. I want the banner fush with the top of the note,
and my input text to start after the banner.  How can I achieve this effect?

Secondly, where do I need to put the banner image?  Right now it is buried
in several folders on my system.. which is ok if I use the stationary only
on my system. However, I am designing this stationary for my daughter, and
want to send it to her. I imagine I will also need to send her the image as
well as the stationary - do I instruct her to put the image in the same
directory as the stationary?

Thanks..

Paul