Ok, here's how we fix this.
Take flattenedimage2.jpg and fill in the white area with the background color from the rest of the image. Set that as the background image for the body. Then, put everything else on top of that. Create one large content div with the background color set to white. Make update.jpg the background image for that div with no-repeat. Send background.jpg to the recycle bin.
If I may, I'd like to make a few other recommendations.
Placing your CSS in a separate file allows these changes to be made much more easily. In fact, having almost all of your CSS as inline styles defeats the purpose of CSS altogether.
As far as fonts: using fonts like the Adobe Caslon Pro for your text will cause issues for any user who doesn't have it, which will be anyone who doesn't have any Adobe Creative Suite products installed. If you're going to rely on local fonts, it's better to stick to ones that nearly everyone has, like Arial or Courier New. Alternatively, you could use @font-face declarations to import your own fonts. Check out
Fontsquirrel.com for resources you can use for free.