Just off the top of my head Luke, I would say, shrink up the space there, which will include making the pic smaller but I think it'll still be a good size. That may make the HOME seem like it is floating less. Another option would be to put it into a cell and float it. Depending on the format you're using, you may or may not be able to do that. Yet another option would be to not use it at all. Then if you are worried about whether people know, you can play with your nav buttons: make them a different color for the page you're on, maybe even make the current page button larger as well as colored differently.
That's about all I can think of. I don't design websites anymore. Can't wrap my head around all the programming so I leave it to the younger generation. My own hasn't changed much in years and isn't likely to change :mrgreen: But I do consider myself a designer, or at least someone who knows enough about design to give a critique and maybe offer suggestions.
Also, I agree with Marianne about the bottom of the page navigation. Usually they are straight across the page and for a good reason. It works; it is clear and easy to find and separate the links and it looks good. If you shrink the top of the page, it should fit in your preferred vertical space. Just bear in mind that that doesn't matter that much. People's monitors will all be different sizes and resolutions (to some degree) and some will magnify their screens, etc. Most people expect to scroll down, just not across. Chris makes some good points; I just haven't examined the issue he mentions.
You're going in the right direction and I'd say it's quite acceptable for what it is, so now you're into the finessing stage!